Mazagon Dock Shipbuilders Declares Final Dividend: Check Details and Impact on Investors
Mazagon Dock Shipbuilders Ltd.’s shareholders have approved a final dividend of Rs 2.71 per equity share for the fiscal 2025 at the company’s annual general meeting. The company has announced the distribution of nearly Rs 109.32 crore to shareholders.
Payment of Final Dividend
The company will complete the payment of the final dividend within 30 days from the date of the AGM held on Monday, according to the exchange filing. The central government, which owns 84.8% stake in the submarine-maker, will gain Rs 93 crore. The record date will be announced later.
Dividend History
The final dividend is in addition to the first interim dividend of Rs 23.19 per share and second interim dividend of Rs 3 per share paid during the financial year. In fiscal 2024, Mazagon Dock issued a total dividend of Rs 35.30 per share.
Q1 Results: Net Profit and Revenue
Mazagon Dock reported a 35% decrease in net profit in the quarter ended June 2025 to Rs 452 crore, compared to Rs 696 crore in the year-ago period. Analysts tracked by Bloomberg had a consensus estimate of Rs 695 crore.
Revenue rose by 11.4% year-on-year for the three months ended June, reaching Rs 2,625.59 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 53% year-on-year to Rs 302 crore. The Ebitda margin contracted to 11.5%.
Stock Performance
The update on dividend approval was shared after the market hours on Monday. The stock settled 2.71% lower at Rs 2,751 apiece on the NSE, compared to a 0.08% decline in the benchmark Nifty 50. The shares earlier during the day fell as much as 3.63% to Rs 2,725 per share.
The stock has risen 31.14% in the last 12 months and 23.49% year-to-date.
Analyst Ratings
Out of six analysts tracking the company, four maintain a ‘buy’ rating and two suggest ‘sell’, according to Bloomberg data. The average 12-month consensus price target of Rs 3,144.67 implies a potential downside of 14.3%.
For investors looking to invest in Mazagon Dock Shipbuilders, it’s essential to consider the company’s financials, dividend history, and analyst ratings. Investing in dividend stocks can be a great way to generate regular income, but it’s crucial to do your research and consider your overall investment goals.
Conclusion
Mazagon Dock Shipbuilders’ final dividend declaration is a positive move for investors. However, the company’s Q1 results and stock performance suggest that investors should exercise caution. As with any investment, it’s essential to do your research and consider multiple factors before making a decision.
