Mazagon Dock Shipbuilders Limited (MAZDOCK) has become one of India’s most sought-after defense stocks, reflecting the country’s growing emphasis on self-reliance in defense manufacturing. As of October 2025, the stock trades near ₹2,830 on NSE/BSE with a market capitalization exceeding ₹1.14 lakh crore.
Backed by a robust order book of ₹40,000+ crore, a stellar ROE of 36.5%, and minimal debt, the company has consistently delivered strong financial results. Investors are bullish on its long-term prospects due to India’s expanding naval modernization programs and global export opportunities.
About the Company
Founded in 1934 and headquartered in Mumbai, Mazagon Dock Shipbuilders Limited (MDL) is India’s leading shipyard engaged in building warships, submarines, and offshore platforms for the Indian Navy and other clients.
Key segments include:
- Shipbuilding: Frigates, destroyers, and corvettes.
- Submarine Division: Construction and repair of Scorpene-class submarines.
- Offshore Engineering: Platforms for oil & gas companies.
The company plays a vital role in India’s Make in India defense initiative and exports ships to friendly nations, reinforcing its strategic importance.
Fundamental Analysis
Revenue & Profit Trends
| Metric | FY2025 (₹ Cr) | YoY Growth |
|---|---|---|
| Sales | 11,432 | +21% |
| Operating Profit | 2,066 | +46% |
| Net Profit | 2,325 | +26% |
| EPS | ₹57.63 | +26% |
| OPM | 18% | +3% |
Mazagon Dock has maintained steady revenue growth driven by its long-term naval contracts and higher execution of submarine and warship projects.
Valuation Metrics
- P/E Ratio: ~54.4x (premium due to growth visibility)
- ROE: 36.5%
- ROCE: 49%
- Book Value per Share: ₹178
- Piotroski Score: High (indicating strong financial health)
These metrics highlight Mazagon Dock’s efficiency and premium market valuation due to its strategic defense positioning.
Balance Sheet Strength
- Equity Share Capital: ₹202 crore
- Reserves: ₹6,979 crore
- Borrowings: ₹20 crore (negligible debt)
- Total Assets: ₹28,045 crore
The company operates virtually debt-free, ensuring strong liquidity and consistent dividend payouts while maintaining financial flexibility.
Shareholding Pattern (FY2025)
- Government of India: 84.8%
- Public & Institutions: 15.2%
As a PSU under the Ministry of Defence, Mazagon Dock’s ownership structure adds stability and policy support, though divestment plans could enhance liquidity in the future.
Past Stock Performance
Since its IPO in 2020 (issue price ₹145), Mazagon Dock’s stock has delivered massive multi-bagger returns, surging over 1,800% in just five years.
Strong earnings growth, defense spending push, and order inflows have consistently driven the stock higher, making it one of the top-performing PSUs on the NSE.
Mazagon Dock Share Price Target for 2025–2050
| Year | Minimum (₹) | Average (₹) | Maximum (₹) |
|---|---|---|---|
| 2025 | 3,000 | 3,400 | 3,800 |
| 2026 | 3,600 | 3,900 | 4,400 |
| 2027 | 4,500 | 5,000 | 5,500 |
| 2028 | 5,500 | 6,000 | 6,600 |
| 2029 | 6,600 | 7,200 | 8,000 |
| 2030 | 7,800 | 8,500 | 9,200 |
| 2035 | 14,000 | 15,500 | 17,000 |
| 2040 | 27,000 | 30,000 | 33,000 |
| 2045 | 55,000 | 60,000 | 67,000 |
| 2050 | 90,000 | 1,00,000 | 1,20,000 |
Mazagon Dock Shipbuilders Share Price Target 2025 – 2050
Mazagon Dock Share Price Target 2025
Mazagon Dock is expected to close FY25 with strong earnings growth and an expanding order book.
Target range: ₹3,000–₹3,800, reflecting ~15–25% upside as investors price in defense budget expansion.
Mazagon Dock Share Price Target 2026
With FY26 revenue projected at ₹12,682 crore and EPS nearing ₹70, valuations could rise to ₹3,900–₹4,400, assuming consistent margins and new naval contracts.
Mazagon Dock Share Price Target 2027
By 2027, India’s naval modernization and export orders could propel the stock to ₹5,000–₹5,500 levels. Continued profitability and government push for indigenous defense manufacturing will drive momentum.
Mazagon Dock Share Price Target 2028
Exports to friendly nations and submarine contracts (like Project-75I) could lift revenue growth above 20%, with share price targets between ₹5,500–₹6,600.
Mazagon Dock Share Price Target 2029
Expected EPS around ₹120 and market optimism could re-rate the stock towards ₹7,000–₹8,000, supported by new global defense partnerships.
Mazagon Dock Share Price Target 2030
As one of India’s top shipbuilders globally, Mazagon Dock may command a fair valuation near ₹8,500–₹9,200, reflecting India’s defense export leadership.
Mazagon Dock Share Price Target 2035
Assuming 18–20% CAGR, Mazagon Dock could reach ₹15,500 on average by 2035, with consistent government contracts ensuring multi-year growth visibility.
Mazagon Dock Share Price Target 2040
At this stage, the company may become a leading global naval supplier, pushing prices around ₹30,000, roughly 10x its 2025 levels.
Mazagon Dock Share Price Target 2045
With new export geographies and defense collaborations, the stock could touch ₹60,000, driven by sustainable profitability and high-margin projects.
Mazagon Dock Share Price Target 2050
By 2050, assuming 12–15% CAGR from 2040, Mazagon Dock could trade near ₹1,00,000 per share, marking one of the most successful PSU growth stories in Indian history.
Growth Drivers
- Government push for Atmanirbhar Bharat in Defense
- Expanding order book above ₹40,000 crore
- Strong export potential in Asia and Africa
- High ROE (36%) and debt-free operations
- Modernization of Indian Navy and submarine projects
- Strategic PSU status ensures consistent demand pipeline
Expert Views
- Progressive Shares: Projects up to 51% upside within 12 months (target ₹4,200).
- Simply Wall St: Forecasts 20% EPS CAGR over the next five years.
- Market Analysts: Expect long-term P/E re-rating due to sustained profitability and zero debt structure.
Risks & Challenges
- Order execution delays due to government procurement cycles
- Dependence on defense budget allocation
- High valuation (P/E >50) may limit short-term upside
- Limited diversification outside defense contracts
- Geopolitical or export-related risks
Investment Suitability
- Short-Term (1–2 years): Hold with 10–20% upside potential from defense order wins.
- Long-Term (5–25 years): Strong buy. Ideal for investors seeking PSU-backed, low-debt, high-ROE defense exposure.
- Risk Level: Moderate — mainly valuation and execution-related risks.
FAQs
Q1. What will be Mazagon Dock’s share price in 2030?
By 2030, Mazagon Dock’s share price is expected to reach ₹8,500 on average, assuming 18–20% annualized earnings growth.
Q2. Can Mazagon Dock reach ₹5,000 by 2027?
Yes, based on the company’s strong earnings trajectory and ₹40,000 crore order book, ₹5,000 by 2027 appears achievable.
Q3. Is Mazagon Dock good for long-term investment?
Absolutely. With a zero-debt balance sheet, high profitability, and consistent government contracts, Mazagon Dock is a solid long-term compounding PSU.
Q4. What are the risks involved?
Execution delays, valuation contraction, and dependence on defense budget allocation remain the main concerns.
Conclusion
Mazagon Dock Shipbuilders stands out as a flagship PSU in India’s defense sector, reflecting the country’s growing naval and submarine capabilities.
With a robust order pipeline, zero-debt structure, and consistent profitability, the company offers a rare combination of growth and stability.
For investors seeking long-term wealth creation with moderate risk, Mazagon Dock remains one of the most promising PSU defense stocks for 2025–2050.
