India’s defence sector is booming this July, especially after Operation Sindoor. Among all the rising stocks, one company in particular is stealing the spotlight– Mazagon Dock Shipbuilders. It actually started with a traditional shipyard company, which has now become a vital part of India’s naval and defence ambitions.
Let’s break it down
The Submarine Superpower in the Making
Mazagon Dock Shipbuilders is riding a massive wave of defence contracts that could reshape India’s naval dominance. As of July 2025, the company is playing a key role in India’s biggest-ever naval expansion. It has secured submarine contracts worth over ₹1.06 lakh crore. These deals will probably boost the company’s financial position in the market. At the same time, they will enhance India’s naval strength and overall maritime security. This is a turning point for the national defence and the company’s future.
Stock Overview
| Metric | Value |
| Ticker | MAZDOCK |
| Sector | Shipbuilding & Defense |
| Market Cap | INR 128052.98 |
| Current Market Price | INR 3,130 |
| 52-Week High/Low | INR 3,778/1,918 |
| P/E Ratio | 52.4 |
| Book Value | INR 197 |
| Dividend Yield | 0.46% |
| Face Value | INR 5.00 |
Company Background
Mazagon Dock Shipbuilders Limited (MDL) is India’s largest submarine manufacturer and premier defense shipyard under the Ministry of Defence. Established in 1774, the company has evolved from a small dry dock into India’s only shipyard capable of building destroyers, conventional submarines, and corvettes for the Indian Navy. Since 1960, MDL has constructed over 801 vessels, which includes 28 warships and 7 submarines.
Q4 FY25 Financial Performance
| Metric | Q4 FY2025 | FY2024 | FY2025 | YoY FY24 vs FY25 (%) |
| Revenue (INR crore) | 3,174.41 | 9,466.58 | 11,431.88 | 20.7% |
| Operating Profit | 90 | 1416 | 2060 | 45.6% |
| Profit Before Tax | 369.81 | 2425 | 3062 | 26.4% |
| Net Profit (INR crore) | 325.29 | 1,936.97 | 2,413.51 | 24.6% |
Source: Mazagaon Disclosures
The ₹1.06 Lakh Crore Banger Orders
Mazagon Dock is set to finalise two major submarine contracts before March 2026. This could be India’s largest-ever defence procurement.
The first contract is Project 75-I, valued at ₹70,000 crore. MDL will join hands with Germany’s ThyssenKrupp Marine Systems to develop six advanced HDW Class 214 submarines equipped with cutting-edge Air Independent Propulsion (AIP) systems. With the ability to stay underwater for up to two weeks without coming to the surface, these submarines will give India unprecedented stealth capabilities in the Indian Ocean.
The second contract, worth ₹36,000 crore, involves constructing three additional Scorpene-class submarines, bringing the total value to over ₹1.06 lakh crore. This represents more than three times the company’s current annual revenue, signaling a fundamental shift in scale and strategic importance.
Financial Impact and Analyst Views
The defence sector’s recent performance has generated diverse analyst opinions on Mazagon Dock’s investment appeal. Financially, the implications are massive. Not surprisingly, the stock has more than doubled over the past year, but the valuations may or may not tell the same picture. Here’s what analysts are saying:
- JPMorgan analysts pointed out that “while Mazagon Dock’s order inflow seems very promising, the current margins might not be sustainable, which could impose certain risks to future earnings growth and valuations of the company.
- According to Antique Stock Broking– “The order book of listed defence shipyards is likely to swell over three times in the next two years”, maintaining a “buy” rating for the stock.
- On the other hand, ICICI Securities maintained its “sell” recommendation on MDL even though the company’s March quarter results were better than anticipated.
These analyst recommendations are showing a mixed picture of the stock and its future outlook. However, from a technical perspective, Mazagon Dock’s stock has shown remarkable stability. After hitting an all-time high at ₹3,778 in May 2025, the stock cooled off a bit in July, but it’s still up 71.16% from its February low of ₹1,917.
Expanding the Capacity
Mazagon Dock is also expanding its capacity to execute the winning contracts successfully and timely manner. The company is actively investing ₹5,000 crore into their expenditure over the next 4–5 years. This aims to expand its capacity to more than double.
As with current resources, they can build 11 submarines and 10 warships at once. This expansion will help them absorb the surge in new orders without missing a beat. And they’ve proved their execution chops already. All six Scorpene-class submarines under Project 75 were successfully delivered, with the last one- INS Vaghsheer- commissioned in January 2025.
Building Exports
While the domestic defence orders dominate the headlines, MDL is quietly expanding into export markets as well. The company has ongoing contracts with European clients for hybrid-powered vessels and has signed agreements with Denmark for multipurpose cargo vessels. This diversification policy will minimize the reliance on local defence contracts as well as will help in achieving international credibility.
Though exports currently make up only 3% of revenue, they represent a crucial diversification. Success in international markets could provide additional growth avenues beyond the massive domestic opportunity.
Takeaway
As of July 2025, the story of Mazagon Dock Shipbuilders has remarkably emerged as one of the standout stories in the Indian defence sector. With a strong order book, expansion plans, and a growing role in exports, Mazagon Dock continues to attract attention from both investors and financial analysts.
In the market chaos, MDL’s solid fundamentals and its central role in India’s defence build-up make it a stock to watch closely this July.
