Mazagon Dock shares rise for third straight session, hit record high; what’s next?

Shares of Mazagon Dock scaled a fresh record high in early deals amid correction in the broader market. The multibagger stock, which closed 20% higher at Rs 5,600.80 on Thursday, scaled a record high of Rs 5750 on Friday. The defence sector stock climbed 2.67% higher against the previous close of Rs 5600.80 on BSE. Market cap of the firm rose to Rs 1.14 lakh crore. The stock saw a high turnover of Rs 100.99 crore with 1.82 lakh shares changing hands in the morning session.

Mazagon Dock shares have a one-year beta of 1.3, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 82.4, signaling it’s trading in the overbought zone.

Mazagon Dock share price has risen 338% in a year and gained 2,159% in two years. The stock zoomed 2129% in three years.

Shiju Koothupalakkal – Technology Research Analyst, Prabhudas Lilladher has given a price target of Rs 5,740 levels in coming days. 

“The stock has witnessed a strong bullrun in the last 2 months with series of higher lows and higher top formation on the daily chart. The near-term support zone would be near Rs 4300 levels below which the bias can turn little bit weak. With the overall bias maintained strong, we can expect further gains till the budget session expected in the next two weeks time,” said Koothupalakkal.

Mandar Bhojane, Equity Research Analyst, Choice Broking said the stock can reach Rs 6,000 in the near term. 

“This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock. The overall trend for Mazagon Dock is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. One can consider buying on dips, particularly around Rs 4500, capitalizing on potential retracements in the stock price. A stop loss at Rs 4,200 is recommended,”said Bhojane. 

About the company

Mazagon Dock Shipbuilders Ltd (MDS) is a shipbuilding and offshore fabrication yard. The company’s major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.