Mazagon Dock Shipbuilders Limited aptly called “Ship Builder to the Nation”, is one of India’s leading Defence public sector undertaking shipyard under the Ministry of Defence. Its main activities are the construction of warships and submarines with facilities situated at Mumbai and Nhava (under development) as mentioned on their official website. They have the capability to build warships, submarines, merchant ships up to 40,000 DWT since 1979.

 Financials: The Firms' revenue saw massive growth in the FY 2018 at 27.03% YOY growth securing ₹44,703.61 Million which got descended in the last 2 years but the growth has been positive.

 Valuations &ROE(Return on equity): There has been a consistent decline in the ROE currently offering 15.54% but measuring the P/B (Price to book)value which is 0.95. The offer price band seems to be undervalued which can be a major edge for the investor looking for a short term profit book.

 Business Prospects: At present, the firm only caters to defence ships and has a high order book for complex & sophisticated ships for the Indian Navy and Indian coast guards.

 Competitor's Analysis: As compared to its competitors engaged in multiple business segments, Mazagon dock provides a lucrative P/E(Price to Earnings) value of 6.79% which might be below than the industry average at 10.91% but the firm has strengths and govt.'s pillar to cater into tankers, dry cargo, passengers and ship repair engineering works as well in their expansion stage.

 Major push effects: The firm has the ability and government's held up to get prioritise orders & business in the exports industry. India has served international clients in the past and has higher chances to cater defence and commercial products to Latin America, Africa, south-east Asia & middle east.

Therefore, all these effects and undervalued listing can push this IPO to positive sides and with expansion & export orders, the investors might go for a huge profit booking stage along with major risks involve from compliance or public policy sectors at a later long stage.

credits
https://equitycurve.co.in/
www.timesofindia.com/

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