Explained: Why Mazagon Dock Shipbuilders shares hit 52-week high today
Explained: Why Mazagon Dock Shipbuilders shares hit 52-week high today
Mazagon Dock Shipbuilders shares surged 6.5% on Wednesday, hitting a fresh 52-week high of Rs 4,269.75 on the Bombay Stock Exchange (BSE), following the company's announcement of receiving 'Navratna' status.
This prestigious designation, approved by the Department of Public Enterprises on June 25, 2024, elevates Mazagon Dock's status within the PSU sector, granting it enhanced autonomy in key operational areas.
"This is to inform that Department of Public Enterprises (DPE) vide its letter dated 25" June 2024 has approved the proposal for grant of Navratna status to Mazagon Dock Shipbuilders Limited,"the company said in a stock exchange filing.
As a Navratna company, Mazagon Dock can now undertake capital expenditures and invest up to Rs 1,000 crore or 15% of its net worth in a single project without requiring government approval.
The company also gains the flexibility to pursue joint ventures, establish subsidiaries abroad, and manage human resources more independently.
The surge in Mazagon Dock's shares also reflects investor optimism driven by its potential involvement in a substantial Rs 35,000 crore deal with the Ministry of Defence for additional Kalvari-class submarines.
This development, coupled with expectations of stable policies under the new coalition government, has bolstered confidence in defence sector stocks.
Shares of Mazagon Dock Shipbuilders havedemonstrated strong performance, delivering over 1,500% returns in the past two years and 230% increase in the last year alone, highlighting its strong market position and growth trajectory.
As of 2:10 pm, shares ofMazagon Dock were up 4.45% at Rs 4,153.40 on the BSE.