ABOUT THE COMPANY
Mazagon Dock Shipbuilders Limited (MDL) is also known as the “Shipbuilder of the Nation”. It is a defence public undertaking under the Ministry of Defence. MDL specializes in constructing destroyers, frigates, corvettes, and submarines, alongside commercial vessels and ship repairs. The company has delivered 800 vessels, 28 warships and 8 submarines. As od September 2025 the company has an order book of Rs 32,260 Crores with 65% of the orders are from the Navy and Post Guard ensuring revenue visibility in the future. Company has given extraordinary returns over the past 5 years. The stock prices went from Rs 110(approx.) in Dec 20 to Rs 2400(approx.) in Dec 25. The company stands at a market capitalization of Rs 1,00,369 Crores. The company has partnered with Germany’s ThyssenKrupp Marine Systems (TKMS) for Project 75I to build submarines in India. Company has capacity to build 10 Warships and 11 conventional Submarines simultaneously. Companie’s management is of the view to invest Rs 5,000 Crores on various capex projects over the next five years.
Quick peer context:
| Company Name | Market Capitalization | Return On Capital Employed | Return On Equity |
| Mazagon Dock | ₹ 1,00,368 Crores | 43.19 % | 34.02 % |
| Cochin Shipyard | ₹ 42,561 Crores | 20.35 % | 5.85 % |
| Swan Defence | ₹ 6,318 Crores | -5.76 % | 46.31 % |
Mazagon Dock Shipbuilders Limited (MDL) market capitalization is highest among the industries, which shows that investors have confidence in the company compared to its competitors. Being a PSU under the Ministry of Defense, future profits through its order book are confirmed which act as a support pillar for such high valuation.
ROCE and ROC of Mazagon Dock Shipbuilders Limited both are better when compared to its competitors, which shows that the management is successful in generating returns on the capital employed and making best use of its resources.
Analysis of the Financial Statements
Revenue Growth Trend
Sales of the company have multiplied 2.5 times in the past 5 years. CAGR for the 5 years of the company is 18.44%. The robust order book ensures that the same rate of growth can be expected in the future.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 4,905 CRORES | 4,048 CRORES | 5,733 CRORES | 7,827 CRORES | 9,467 CRORES | 11,432 CRORES |
Profitability & Margin Analysis
Operating profits margin of the company remained steady at around 15-18%, which is close to its competitors. This indicates management focuses on cost reduction and being able to generate better profits for its investors. Company 80% of the expenses are due to the material cost used in production which is a variable cost i.e. it will grow as the sales grow.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 5% | 6% | 8% | 10% | 15% | 18% |
Balance Sheet Strength
Total Assets of the company have been constant over the years, out of the total asset’s majority is covered by cash and cash equivalent lying with the company. Fixed assets have shown growth throughout the years but the cash and cash equivalents lying with the company must be invested or put to use for generating better profits in the future.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 20,943 Crores | 25,140 Crores | 29,773 CRORES | 29,476 CRORES | 29,463 CRORES | 28,804 CRORES |
Debt Profile
Company is working on no debt profile, which is justified as sufficient cash and cash equivalents are lying with the company to fulfill its need for any resource for further production.
The reserves and surplus have grown sharply, indicating that the company has potential to expand its production capacity in the future and scale up when needed.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 2,858 CRORES | 3,230 CRORES | 3,656 CRORES | 4,558 CRORES | 6,042 CRORES | 7,738 CRORES |
Cash Flow Health
The Cash from Operating Activity has been fluctuating over the years but has remained positive in the past 3 years. Cash flow from investing activity has been negative due to fixed assets and other investing items purchased over the years. Cash conversion cycle of the company is 106 days, which is much better than its competitors.
Comparative Data with Key Competitors (Cochin Shipyard, Swan Defence)
| Parameter | Mazagon Dock | Cochin Shipyard | Swan Defence |
| Sales Growth (5-Yr CAGR) | 18% | 6% | -38% |
| Operating Profit Margin | 18.3% | 14.9% | -19% |
| Debt-to-Equity | 0.00x | 0.01x | 8.33x |
Disclaimer: The article is for informational purposes only and not investment advice.