Mazagon Dock shares crash 13% after Q2 results to hit 52 week low; check fresh price targets

Mazagon Dock share price: State-run defence player Mazagon Dock Shipbuilders Ltd has been hit hard following a muted set of numbers in the September 2026 quarter. The stock has cracked as much as 13 per cent in just two sessions to hit new 52-week lows after its results were declared and brokerages trimmed their price targets.

Shares of Mazagon Dock dropped more than 3.8 per cent to Rs 1,688.35, hitting fresh 52-week lows, with its market capitalisation slipping below Rs 70,000 crore. However, the stock dropped as much as 13 per cent from its price of Rs 1,933 on Tuesday. The stock is down more than 41 per cent from its 52-week high of Rs 2,882.85, hit a year ago.

Mazagon Dock reported a 54.1 per cent fall in net profit on a yearly basis to Rs 749 crore, while net revenue from operations dropped 16.5 per cent YoY to Rs 2,446 crore for the three months ended September 30, 2026. Its EBITDA was down 71.3 per cent YoY to Rs 694 crore, while margins cracked 1,560 basis points to 8.1 per cent for the quarter.

Mazagon Dock reported a weak 2QFY27 performance as a depleting order book, delays in converting the P75I submarine order and high provisions weighed on results. With the P75I contract yet to be signed, near-term execution and revenue visibility remain subdued, and we have cut our earnings estimates for FY27/28/29E by 15.5 per cent/13.4 per cent/12 per cent, respectively, said Antique Stock Broking.

"However, the order funnel remains robust (Rs 2.5 lakh crore), and finalisation of P75I can significantly elevate the order book and drive medium-term revenue growth, in our view. We continue to value the company at 40 times core H1FY29E EPS and maintain a 'buy' rating with a revised target price of Rs 2,725 (earlier Rs 3,276)," it added.

Choice Institutional Equities acknowledges that order timing, rather than the long-term demand outlook, remains the principal risk. Even after an award, P-75(I) would require a preparatory phase before making a meaningful revenue contribution, while the additional Scorpene programme could offer a relatively quicker execution opportunity.

"We retained a 'buy' rating as we believe the potential replenishment of the order book is not adequately captured by a purely near-term earnings assessment. We revise our target price to Rs 2,500 (from Rs 3,100 earlier), with fresh submarine orders serving as the principal catalyst for a re-rating," it added.

Besides the quarterly earnings, the shipping major has also announced an interim dividend of Rs 5 per share, with November 3 as the record date to determine the eligibility of shareholders. Separately, the board approved additional credit facilities of Rs 1,250 crore from the State Bank of India, Mumbai, to issue a standby letter of credit (SBLC) for its subsidiary Colombo Dockyard PLC.

Among brokerages, Dolat Capital and Centrum Broking gave it a 'buy' rating with target prices of Rs 2,400 and Rs 2,100, respectively. Anand Rathi gave it a 'hold' rating with a target price of Rs 1,956. Kotak Institutional Equities has a 'sell' rating, while JP Morgan has an 'underweight' rating, with target prices of Rs 1,660 and Rs 1,490, respectively. HSBC has a 'reduce' call with a target price of Rs 1,680.