Mazagon Dock Shipbuilders Ltd

Mazagon Dock Shipbuilders Ltd maintains a strong liquidity position, with cash and equivalents amounting to INR 142.096 billion, significantly exceeding its total liabilities of INR 232.053 billion. The company's liquidity_fpt score indicates a low liquidity risk, supported by a current ratio of 1.14 and positive operating cash flow of INR 6.8375 billion. The absence of long-term debt further reduces financial leverage risk, with a debt-to-equity ratio of 0.0.

Profitability metrics show a return on equity (ROE) of 10.62%, outperforming the industry median for Aerospace & Defense firms, which typically range between 6% and 8%. However, the return on assets (ROA) of 2.25% is below the industry median of 3.5%, indicating underutilization of assets relative to peers. Gross profit of INR 10.0124 billion and operating income of INR 5.0119 billion reflect solid margins, but the company must improve asset efficiency to match industry benchmarks.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to sector-specific risks, particularly in defense contracts, which are subject to government budget cycles and geopolitical shifts. The absence of international revenue data suggests a high reliance on domestic operations, which may limit growth potential in a globalized market.

Revenue growth is expected to remain stable, with the current fiscal year (FY) projecting a modest increase. Analysts have set a mean price target of INR 2,830.33, with a median of INR 2,984.00, reflecting cautious optimism. The company's capital expenditure of INR -100.1 million indicates a reduction in investment, which may signal a strategic shift or a focus on cost optimization. However, the lack of significant capex could also limit long-term growth in a capital-intensive industry.

Risk factors include the potential for regulatory changes in defense procurement and the cyclical nature of government contracts. The company's dilution risk is currently low, with no immediate filing-based flags detected. However, the absence of long-term debt does not eliminate the possibility of future equity issuance to fund large-scale projects, which could dilute existing shareholders. The company's capital structure remains conservative, with a focus on maintaining liquidity and minimizing debt exposure.

Recent events include the release of the latest financial snapshot, which confirms the company's strong cash position and profitability. No recent filings or transcripts indicate significant operational or strategic changes. The company's performance is closely monitored by analysts, with a mean recommendation of 2.80 (on a scale of 1 to 5), suggesting a generally positive outlook.

Revenue grew at a 29.6% CAGR over four years, reaching INR 114.3 billion in FY2025.

Net income surged with a 47.2% CAGR, hitting INR 24.1 billion in FY2025.

Analysts project 14.0% upside to a mean price target of INR 2,830.

The company maintains a zero debt-to-equity ratio, indicating a strong balance sheet.

Analyst consensus recommendation is 'hold', indicating limited near-term upside potential.

Revenue INR 36.01B, +14,6% YoY; Operating income +11,1% YoY.

• ▍Revenue INR 36.01B, +14,6% YoY
• ▍Operating income +11,1% YoY
• ▍Net income +9,0% YoY
• ▍Net margin 24.4%

Revenue INR 29.29B, +6,2% YoY; Operating income +37,7% YoY.

• ▍Revenue INR 29.29B, +6,2% YoY
• ▍Operating income +37,7% YoY
• ▍Net income +28,1% YoY
• ▍Net margin 25.6%

Revenue INR 26.26B, +11,4% YoY; Operating income −55,0% YoY.

• ▍Revenue INR 26.26B, +11,4% YoY
• ▍Operating income −55,0% YoY
• ▍Net income −35,0% YoY
• ▍Net margin 17.2%

Revenue INR 31.74B, +2,3% YoY; Operating income −87,8% YoY.

• ▍Revenue INR 31.74B, +2,3% YoY
• ▍Operating income −87,8% YoY
• ▍Net income −50,9% YoY
• ▍Net margin 10.2%

Revenue INR 31.44B; Operating income INR 7.77B.

• ▍Revenue INR 31.44B
• ▍Operating income INR 7.77B
• ▍Net margin 25.7%

Revenue INR 27.57B; Operating income INR 4.87B.

• ▍Revenue INR 27.57B
• ▍Operating income INR 4.87B
• ▍Net margin 21.2%

Revenue INR 23.57B; Operating income INR 6.19B.

• ▍Revenue INR 23.57B
• ▍Operating income INR 6.19B
• ▍Net margin 29.5%

Revenue INR 31.04B; Operating income INR 5.01B.

• ▍Revenue INR 31.04B
• ▍Operating income INR 5.01B
• ▍Net margin 21.4%

Revenue INR 114.32B, +20,8% YoY; Operating income +46,4% YoY.

• ▍Revenue INR 114.32B, +20,8% YoY
• ▍Operating income +46,4% YoY
• ▍Net income +24,6% YoY
• ▍Free cash flow −53,5% YoY
• ▍Net margin 21.1%

Revenue INR 94.67B, +20,9% YoY; Operating income +83,0% YoY.

• ▍Revenue INR 94.67B, +20,9% YoY
• ▍Operating income +83,0% YoY
• ▍Net income +73,1% YoY
• ▍Free cash flow +90,9% YoY
• ▍Net margin 20.5%

Revenue INR 78.27B, +36,5% YoY; Operating income +108,2% YoY.

• ▍Revenue INR 78.27B, +36,5% YoY
• ▍Operating income +108,2% YoY
• ▍Net income +83,2% YoY
• ▍Free cash flow +64,7% YoY
• ▍Net margin 14.3%

Revenue INR 57.33B, +41,6% YoY; Operating income +811,9% YoY.

• ▍Revenue INR 57.33B, +41,6% YoY
• ▍Operating income +811,9% YoY
• ▍Net income +18,9% YoY
• ▍Free cash flow +27,1% YoY
• ▍Net margin 10.7%