Seas play a very vital role in the growth of any nation because a major chunk of exports and imports is done by the sea. The sea offers an economical route to travel goods from one part of the world to the other part of the world. But in recent times the challenges on the sea are increasing very fast and to address these challenges we need a strong Navy. In the leadership of Prime Minister Narendra Modi India is working hard to develop its Navy and they are adding advanced fighter ships and destroyers to safeguard Indian interests in the Sea. Today, the Indian Navy is a strong force in the Sea and its fleet is constantly increasing.
Mazagin Dock Shipbuilders (MDS), A govt of India undertaking, is one company which is working hard to make the Indian Navy strong by constructing world-class ships for the Navy. Established in 1960, they have built 802 vessels so far. Today, India is no longer dependent on countries like Russia to get Martine requirements and destroyers. Mazagon Dock Shipbuilders are front runners in designing, repairing and creating marine vessels for India and friendly nations. MDS stock has given good returns in the recent past with 1150% returns in five years and 187% returns in the last year.
But its growth in the last month is flat because of high returns in the past. So Stock of MSD has gone through some corrections and profit booking. Quality-wise this is one of the best stocks available in the stock market with a good positive score. MSD is a zero-debt company with a more than 70% holding of the promoters which is a very good sign. Chart this stock is moving flat so neither flowing positive or negative moment. Mozagon Dock Shipbuilders have found great support at 2000 level and it is holding well above it.
In future, this stock can take a positive trend as the company has strong fundaments and a good order book. Stock can see a 15-30% upside soon.
But we should be careful of the new public open offer on this stock that can be at a 10% premium thus we may see slightly more slide in this stock. Also, the company needs more new orders because they are still working on the old orders.
Current Price - 2100
Future Trend - 15-30% increase in (1 to 1.5 years) or -10% slide can be possible
Risk - Average
Stop Loss - 2000
){kind=link}