Mazagon Dock Shipbuilders shares extended their decline for the second consecutive day, plummeting over 6% to an intraday low of Rs 4,408 apiece on the National Stock Exchange. This follows ICICI Securities’ decision to maintain a sell rating on the stock, citing significant valuation concerns.
Despite raising the target price to Rs 1,165 apiece from Rs 900, ICICI Securities warns of a massive 77% downside from Friday’s close. The brokerage firm believes the stock is overvalued, even after factoring in potential orders and elevated margins.
Mazagon Dock Shipbuilders’ shares have surged almost 70% in the past three months, hitting a 52-week high of Rs 5,859.95 in July. However, ICICI Securities’ sell rating has sparked a decline, with the stock losing over 6% in two days.
The company reported robust June quarter results, with a 7.8% year-on-year increase in revenue and a 121% YoY surge in net profit. However, ICICI Securities remains bearish, maintaining its sell rating and warning of a significant downside.
