Mazagon Dock (MAZDOCK)
Fast GrowerFairStock Score: 72/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,580 |
| Market Cap | ₹1,04,072.04 Cr |
| P/E Ratio | 38.76 |
| ROCE | 43.19% |
| ROE | 30.31% |
| Dividend Yield | 0.81% |
| Profit Growth | 21.57% |
| Debt/Equity | 0.04 |
| Sales Growth | 5.69% |
| Free Cash Flow | ₹779 Cr |
| Promoter Holding | 81.22% |
| 52-Week Range | ₹2,057.4 — ₹3,061.4 |
| Sector | Industrial Manufacturing |
| Book Value | ₹241.83 |
Strengths
- Zero debt with strong profitability: ROE 30.31%, ROCE 43.19%.
- Long-term growth: 5-year revenue CAGR of 23.08% and Piotroski F-Score of 8/9.
- Strategic defense shipbuilding moat with high government promoter holding of 81.22%.
- Latest quarter generated ₹880 Cr net profit on ₹3,601 Cr sales; free cash flow positive at ₹779 Cr.
Concerns
- Valuation is extreme: P/E 37.29, P/B 13.69, Graham Number ₹514.02, DCF ₹335.51; margin of safety is deeply negative.
- Profit growth has turned negative at -12.52% despite sales growth of 8.53%.
- Altman Z-Score of 2.79 is not a strong safety signal at this price level.
- Negative EV/EBITDA of -735.22, while possibly due to large net cash, makes the valuation picture difficult to assess.
AI Analysis
At ₹2,694.20, Mazagon Dock enjoys a market cap of ₹89,748 Cr. Buffett and Graham would first study the business: zero debt, 30.31% ROE, 43.19% ROCE, and a 23.08% five-year revenue CAGR. The government’s 81.22% promoter holding gives it a genuine moat in defense shipbuilding. Yet a wonderful business must be bought at a sensible price. Yesterday’s growth is not today’s value. Sales grew only 8.53%, while profit fell 12.52%. The latest quarter still earned ₹880 Cr net profit on ₹3,601 Cr sales, a roughly 24% margin, and FCF is ₹779 Cr. The Piotroski score of 8/9 says the balance sheet is healthy. But the price asks too much: P/E 37.29, P/B 13.69, and book value only ₹196.83. Graham Number ₹514.02 and DCF value ₹335.51 are so far below ₹2,694.20 that the quoted margin of safety of -332.84% is effectively no safety. Altman Z of 2.79 sits in grey territory; negative EV/EBITDA of -735.22, even if due to large net cash, does not help valuation. A 0.78% dividend yield, inside a 52-week range of ₹2,057.40-₹3,061.40, suggests expectations are high. FairStock Score of 62/100 and label 'STEADY' are not enough for me to pay this price. I would rather wait for the ship to come back to a harbor where price and intrinsic value are closer. So I exercise patience. Great business, wrong price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer