Sub Deal Sparks Mazdock Rally

Mazagon Dock Shipbuilders stands to gain big from a potential ₹99,000 crore submarine order under Project 75(I). This Navy deal for six advanced subs, built with Germany's TKMS, could transform the company's future. ​ The stock jumped 8-9% recently as talks wrapped up, with approval pending from government authorities. Shares hit ₹2,352, showing strong investor faith despite trading below 52-week highs. Boost for Shareholders Current order book is ₹25,000 crore; this adds massive revenue over 6+ years. FY25 profits hit ₹2,414 crore with 34% ROE and near-zero debt—solid base for growth. ​ For shareholders, it's highly beneficial: order book could top ₹1 lakh crore, ensuring multi-year cash flows. Margins may rise to 15%, driving EPS higher and dividends like recent ₹7.50/share. Stock's 39x P/E prices in optimism, but analysts see 26-30% upside to ₹3,000+ if deal seals by FY26 end. Long-term holders benefit from defence boom and 'Make in India'. Risks to Weigh No major downsides yet—execution delays or cost overruns are risks, given complex builds. Contingent liabilities at ₹37,852 crore need watching, but strong balance sheet helps. ​ High inventory days (373) tie up capital, yet profitability trumps peers. Overall, far more upside than harm for patient investors. ​ This order is the missing piece for rerating, making Mazdock a top defence pick. Shareholders gain visibility and growth, outweighing mild risks.