Mazagon Dock Shipbuilders shares drop most in over 4 months; here's why

Shares of Mazagon Dock Shipbuilders, the country's leading defence public sector undertaking, fell as much as 8% to hit an intraday low of ₹3,450 on the BSE a day after it reported its January-March quarter earnings post market hours on Thursday.

On the National Stock Exchange, Mazagon Dock Shipbuilders shares fell as much as 7.5% to hit an intraday low of ₹3,470. The stock staged its biggest single day fall in over four months, data from BSE showed. Last time the stock fell more than 8% was on January 13.

Mazagon Dock Shipbuilders on Thursday reported net profit of ₹325 crore in fourth quarter of financial year 2024-25, marking a decline of 51% from ₹663 crore in the same period last year.

The company's revenue rose 2.3% annually to ₹3,174 crore from ₹3,104 crore in the year-ago period.

The company reported weak operational performance in March quarter as its earnings before interest, taxes, depreciation and amortisation (EBITDA) also known as operating profit dropped 83% to ₹90 crore from ₹524 crore in the corresponding period a year earlier.

Its EBITDA margin contracted by 14.1% to 2.84% as against 17% in the year-ago period.

Mazagon Dock Shipbuilders board recommended final dividend of ₹2.71 per share.

Mazagon Dock Shipbuilders shares have staged a strong up move as the stock surged a whopping 68% so far this year and it climbed 19% in January-March quarter.

Analysts say that shares of defence equipment makers have been on investors' radar after success of Operation Sindoor showcased prowess of Indian defence equipment makers.

As of 9:58 pm, Mazagon Dock Shipbuilders shares traded 5.33% lower at ₹3,549, underperforming the BSE200 index which was down 0.11%.