Shares of Mazagon Dock Shipbuilders jumped over 7% to an intraday high of Rs 4,550 on the NSE after the company announced a board meeting scheduled for October 22 to consider a stock split and a potential dividend for its shareholders.
Dividend and Record Date Announced
The state-run defense company currently has a face value of Rs 10 per equity share and declared a final dividend of Rs 12.11 per share for the financial year 2024. The company also set the record date for Wednesday, October 30, 2024, for the payment of interim dividends on equity shares for the financial year 2024-25, contingent upon the board’s declaration.
Board Meeting Agenda
In an exchange filing, Mazagon Dock stated, “A meeting of the board of directors of Mazagon Dock Shipbuilders Limited is scheduled on Tuesday, October 22, 2024, to consider the declaration of an interim dividend for the financial year 2024-25 and the sub-division/split of equity shares of the company.”
Government Stake and Market Performance
As of the September quarter’s shareholding pattern, the government held an 84.83% stake in Mazagon Dock, maintaining a position above the minimum public shareholding requirement of 75%.
The company made its stock market debut in October 2020 at an IPO price of Rs 145 per share and reached an all-time high of Rs 5,860 in July of this year. Since then, shares have corrected nearly 30% from those peak levels, resulting in a market capitalization decline to Rs 85,000 crore, down from over Rs 1 lakh crore at its peak.
Retail Investor Interest Grows
Retail investors have increasingly shown interest in Mazagon Dock, with the number of retail shareholders—defined as those with authorized share capital of less than Rs 2 lakh—growing to 656,000 from 464,000 at the end of the June quarter. In percentage terms, retail shareholders raised their stake in Mazagon Dock to 10.6% at the end of September, up from 9% in June.
Analyst Outlook on the Stock
Commenting on the technical outlook Anshul Jain, Head of Research, Lakshmishree Investment & Securities said that the stock has seen a sharp 34% correction from its all-time high of Rs 5,843 and is now experiencing a dead cat bounce. This rebound could extend to the 50% retracement level around Rs 4,745, but with lower volumes driving the rally, it is likely a temporary bounce within the ongoing correction.
Jain also added that investors are advised to use this rally as an opportunity to exit any stuck long positions. Caution is warranted as the stock may continue its downward trend after this short-lived rise.
Stock Performance in Last One Year
In terms of stock performance, Mazagon Dock shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 8.40% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 109.82%, indicating a strong upward trend.
Year-to-date, Mazagon Dock shares have surged by 98.57%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 111.51% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
(Disclaimer: Views, recommendations, and opinions expressed are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)