In a stark contrast to its recent bull run, Mazagon Dock Shipbuilders’ share price took a nosedive today, plummeting 5.5% to ₹4,700.00 apiece on the NSE. This sharp decline comes on the heels of ICICI Securities’ bearish forecast, which predicts a whopping 77% downside for the defence PSU stock.
Despite the company’s impressive Q1 performance, with a 121% surge in consolidated net profit and a robust 27.2% EBITDA margin, ICICI Securities maintains a ‘Sell’ rating on the stock. The brokerage firm cites overvaluation at current market price, suggesting that the stock’s potential orders and near-term margins are already factored into the current valuation.
Mazagon Dock Shipbuilders’ share price has been on a tear, jumping nearly 70% in just three months and delivering multibagger returns of over 112% year-to-date and more than 158% in the past 12 months. However, ICICI Securities’ prediction has raised concerns among investors, sparking a sell-off in the stock.
The brokerage firm has raised its EPS estimates by 51% and 73% for FY25 and FY26, respectively, but believes the stock’s valuation is unsustainable. With a revised target price of ₹1,165, down from ₹900 earlier, ICICI Securities is cautioning investors to exit the stock before it’s too late.
As the stock continues to slide, investors are left wondering if the rally has finally come to an end. Will Mazagon Dock Shipbuilders’ share price continue to sink, or will it rebound from this setback? Only time will tell.
