Amazon Great Indian Festival 2020 - Electronics
Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Amazon Great Indian Festival 2020 - Electronics
Research

| More

Mazagon Dock Shipbuilders Ltd - IPO Review - ICICI Securities

Posted On: 2020-09-28 09:14:23


Mazagon Dock Shipbuilders (MDL) is a DPSU under Ministry of Defence (MoD) with maximum capacity of ~40000 DWT, engaged in construction, repair of warships and submarines for MoD. It is India's only shipyard to have built destroyers and conventional submarine for Indian Navy and one of the initial shipyards to manufacture corvettes in India. It primarily operates in two divisions viz i) shipbuilding under which it is currently building four P-15 B destroyers, four P-17A stealth frigates and ii) submarine & heavy engineering division under which it is currently building or in the process of delivering four Scorpene class submarine under transfer of technology from Naval group, France and a medium refit & life certification submarine.

Investment Rationale

Strong order book to provide long term revenue visibility...

MDL's order book as on July 31, 2020 from its shipbuilding and submarine & heavy engineering segment is at Rs. 54074 crore comprising three major shipbuilding projects and two submarine projects. The strong order book provides long term revenue visibility. MDL expects to have a decent order pipeline in the next one to three years with several projects lined up from Indian Navy and Indian Coast Guard worth ~between Rs. 20000 and Rs. 30000 crore. MDL believes it has the competitive advantage for mega projects like six P-75i conventional submarine project (~Rs. 45000 crore) and six new generation destroyers (~Rs. 50000 crore) to be finalised over the next three to four years. MDL is the only player to have earlier built these types of ships and submarines in India.

Superior infrastructure facilities, to provide significant edge

MDL has undertaken and competed the "Mazdock Modernisation Project", which comprises of new wet basin, goliath cranes, module workshop, cradle assembly shop, store building and associated ancillary structures enabling modular integrated construction that would substantially reduce the built period in future. Post completion of modernisation, the outfitting warship capacity increased from eight warships to 11 warships since 2014 and submarine capacity from six submarines to 11 submarines since 2016. The infrastructure and facilities available with MDL combined with its vast expertise would provide a significant edge over its domestic peers.

Priced at P/E of 6.1x (post issue) FY20 on upper band

MDL being the only shipbuilder to have built destroyers and conventional submarines could have an edge in future orders. Considering the strong order book, superior infrastructure facilities, debt free status, one can expect better growth outlook for the company in the long run. At the higher end of the price band of Rs. 145, the stock is available at a P/E of ~6.1x (on post issue basis). We recommend SUBSCRIBE on the issue with a view of listing gains.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MazagonDock_IPOReview.pdf


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com

Amazon Great Indian Festival 2020 - Mobiles


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Kajaria Ceramics - Q2FY21 First Cut - ICICI Securities

Quant Pick - Larsen & Toubro - ICICI Securities

Hindustan Unilever - Q2FY21 First Cut - ICICI Securities

Hindustan Zinc - Q2FY21 First Cut - ICICI Securities

Dhanuka Agritech - Buy back - Angel Broking

Equitas SFB IPO - Day 1 Subscription - Angel Broking

Dr. Reddy's lab relaunch of OTC product - Angel Broking

Hindustan Unilever Ltd - Q2FY21 Results - Angel Broking

Hindustan Unilever Ltd - Q2FY21 Results - YES Securities

Maintain BUY on ACC - Strong cost controls cushion earnings - HDFC Securities

Equitas Small Finance Bank (ESFB) - Subscribe - YES Securities

Granules India - Q2FY2021 results - Angel Broking

Sunteck Realty - Acquisition of 50 acres - Angel Broking

Maintain BUY on Oberoi Realty - Sharp recovery - HDFC Securities

L&T bidding for rail corridor - Angel Broking

Maintain REDUCE on L&T Technology Services - Recovery priced in - HDFC Securities

India IT Services - Thematic - Rising 5G Adoption to Industrialize Digital Services & Connectivity - Reliance Securities

L&T Technology Services - Q2FY21 Result - Angel Broking

L&T Technology Services - 'Multiple' headwinds - ICICI Securities

HDFC Life Insurance Company - Recovery well on track post Covid-19 dip - ICICI Securities

ACC - Strong execution - third time in a row - ICICI Securities

Tata Communications - Keeping faith on sales funnel for revenue growth - ICICI Securities

Hatsun Agro Products - Healthy revenues; strong margins - ICICI Securities

Amber Enterprises Ltd - Business Update Call - YES Securities

Key Takeaways from Q2FY21 earnings call of Shoppers Stop - YES Securities

CSB Bank Q2 FY21 - Not Rated - YES Securities

Britannia Industries 2QFY21 results - YES Securities

HDFC Life Insurance - Q2FY21 Results - YES Securities

ACC Ltd - Q3CY20 Results - YES Securities

IPO Review - Equitas Small Finance Bank - ICICI Securities

Rallis India - Q2FY21 First Cut - ICICI Securities

ACC Ltd - Q3CY20 First Cut - ICICI Securities

Equitas Small Finance Bank Limited - Strongly developing from a microfinance to small bank... - Geojit

Britannia Industries - Q2FY21 Results - Angel Broking

Rallis India - Q2FY21 Results - Angel Broking

Equitas Small Finance Bank - IPO Note - Angel Broking

ACC Ltd - Q3CY20 Result - Angel Broking

Oberoi Realty - Q2FY21 Result - Angel Broking

Tata Communications - Q2FY21 Result - Angel Broking

India trade deficit for September 2020 - Angel Broking

Route Mobile - 19th October 2020 - Angel Broking

Thomas Cook India and SOTC partner with Accor - Launch Holiday Safe

Alembic Pharmaceuticals - USFDA approval for Amantadine Hydrochloride Tablets - Angel Broking

Maintain REDUCE on Avenue Supermarts - Recovery tracking well - HDFC Securities

HDFC Bank - Q2FY21 Result - Angel Broking

HDFC Bank - Q2FY21RU report - YES SECURITIES

Bajaj Consumer Care - Faster-than-expected recovery - ICICI Securities

HCL Technologies - Strong quarter; modest near-term outlook - ICICI Securities

Shoppers Stop - Strengthening balance sheet & inducting new MD - ICICI Securities

Alkem Laboratories - Outlook remains strong - ICICI Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019