The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Mazagon Dock– Defense PSU which supplies warships, submarines and destroyers to Indian Navy and Coast Guard.

Offer purpose — Divestment by Govt. of India

Key Service domains – Warship building, Refit and repairs, Export

Clients -Indian Govt.

Revenues from Key Services–95%+ for building warships, submarines

Risks —

Sole dependence of Ministry of defence budget which is not increasing rapidly in recent years especially for Navy

Weak growth prospects and volatile profits

Long gestation period for the orders and revenue

Future

Company wants to tap repair and export orders but not successful yet with only 2% orders of outstanding book

Dominant Player in warship building industry with huge order book

Refit and repairs constitute 3.5% of revenue and company wants to increase it to 15-20% in coming years

Valuations

Seems reasonable and lower than other listed entities like Garden Reach and cochin shipyard

Should we apply?

People can avoid to subscribe due to weak growth prospects

Listing day may not see any gains . Recommended to book profits if any on listing day

Long term investing only when growth drivers are clear

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