Mazagon Dock Shipbuilders' Shares Plunges Over 9%; GRSE And Cochin Shipyard Also Tumble

The shares of Defence PSU, Mazagon Dock Shipbuilders (MDSL) on Tuesday (August 20) tumbled down over 9 per cent on the National Stock Exchange (NSE). The stock opened at Rs 4,688.55 apiece on Tuesday.

The shares of the company touched a day-low level of Rs 4,281.00 per share on the NSE.

At 3:30 PM IST, the shares of the company closed at Rs 4,297.00, down by 9.05 per cent.

Apart from MDSL, the shares of Garden Reach Shipbuilders & Engineers (GRSE), and Cochin Shipyard, have also seen their stock prices tumble within the range of 3 per cent to 7 per cent during the day.

The shares of GRSE ended the day at Rs 1,786.00 per share, down by 7.06 per cent on NSE.

Similarly, the shares of Cochin Shipyard went down by 3.73 per cent, ending the day at Rs 2,075.00 apiece.

Mazagon Dock Shipbuilders: The Bear Grip

Mazagon Dock Shipbuilders, has been hit hard, with its stock plunging nearly 9 per cent. This dip was in response to a bearish report from ICICI Securities, which has downgraded the stock's outlook significantly. ICICI Securities has raised concerns about the stock being overvalued, predicting a potential downside of up to 77 per cent.

Despite the company’s strong recent performance and its forecasted high margins until FY27E, the brokerage firm warns of potential risks, including fluctuating order timelines and execution challenges.

They estimate that the stock could drop to Rs 1,165, a dramatic fall from its recent highs. This comes after a surge of more than 120 per cent in the past six months and over 155 per cent in the last year, with the stock recently hitting a 52-week high of Rs 5,859.95 in July.