Multibagger defence stock Mazagon Dock gains for 8th consecutive session, up 34% YTD. Should you buy, sell or hold?

Extending gains to the eighth consecutive session, multibagger defence stock Mazagon Dock Shipbuilders climbed over half a per cent in morning trade on the NSE on Thursday, September 18. Mazagon Dock Shipbuilders share price opened at ₹3,008.50 against its previous close of ₹2,997 and rose 0.70 per cent to hit an intraday high of ₹3,017.90.

Mazagon Dock shares have given a healthy return of 34 per cent year-to-date (YTD), while over the last year, the stock has risen 44 per cent, hitting a 52-week high of ₹3,775 on May 29 and a 52-week low of ₹1,918.05 on February 19 this year.

Over a five-year timeframe, the stock has delivered a multibagger return of nearly 3,480 per cent.

On December 27 last year, the stock underwent a 1:2 split. Each share with a face value of ₹10 was divided into two shares of ₹5 each.

Mazagon Dock Shipbuilders, a Navratna company, is a leading naval defence company which manufactures critical sea-defence assets, including submarines.

Mazagon Dock, like several other defence stocks, has seen strong momentum of late on the prospects of strong demand and increased government focus on the sector.

Brokerage firm Globe Capital Market highlighted that during FY25, annual defence production reached a new high of approximately ₹1.51 lakh crore, up 18 per cent year-on-year growth. Exports also soared to a record ₹23,622 crore.

In the Union Budget FY26, the government allocated ₹6.81 lakh crore for defence. This includes ₹1.80 lakh crore dedicated to capex and modernisation. Crucially, 75 per cent of this capital budget is reserved for domestic procurement, ensuring a major boost for local manufacturers, including a designated portion for private industry, Globe Capital observed.

Globe Capital Market has an "overweight" rating on the stock with a target price of ₹3,920. This implies a 31 per cent upside potential from the stock's September 17 closing of ₹2,997 on the NSE.

(This is a developing story. Please check back for fresh updates.)

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stories by Nishant Kumar

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