CMP: ₹3,773 | Q4 FY25 Results | EduInvesting Roast
🚨 At a Glance
Mazagon Dock Shipbuilders (MDL) posted a firecracker FY25 — ₹2,41,351 lakh net profit, ₹12,55,311 lakh total income, and a final dividend of ₹2.71 per share. BUT… dear shareholder, before you start dreaming of a yacht parked at Gateway of India — let’s go deep into the numbers.
Because beneath that patriotic “Make in India, Build in Mazagon” wave… lies some provision bombs, wild cashflow gymnastics, and enough sarkari complexity to make even CAG say, “Bas karo yaar.”
🛠️ About the Company
- Name: Mazagon Dock Shipbuilders Ltd. (MDL)
- Sector: Defence PSU – India’s go-to shipyard for submarines and warships
- Founded: 1934 (Back when the British were still asking Indians for rent)
- Headquarters: Mumbai Dockyard, Maharashtra
- Clients: Primarily Indian Navy, Coast Guard
- Associate Entity: Goa Shipyard Ltd (47.21% stake)
- Product Line: Submarines (Scorpene class), destroyers (P15B), frigates (P17A), corvettes, offshore vessels
👔 Key Management
| Name | Role |
|---|---|
| Capt. Jagmohan (Retd.) | Chairman & Managing Director |
| Ruchir Agrawal | Director (Finance) & CFO |
| Lalatendu Acharya | New Company Secretary & Compliance Officer |
| Madhavi Kulkarni | Outgoing CS, now Assistant CS |
📊 Financials – FY25 (Consolidated)
| Metric | FY25 | FY24 | Change YoY |
|---|---|---|---|
| Revenue from Operations | ₹11,43,188L | ₹9,46,658L | 🔼 +20.7% |
| Other Income | ₹1,12,123L | ₹1,10,147L | ➖ Flat |
| Total Income | ₹12,55,311L | ₹10,56,805L | 🔼 +18.8% |
| Total Expenses | ₹9,49,145L | ₹8,14,322L | 🔼 +16.5% |
| Profit Before Tax (PBT) | ₹3,06,166L | ₹2,42,483L | 🔼 +26.3% |
| Net Profit | ₹2,41,351L | ₹1,93,697L | 🔼 +24.6% |
| EPS (₹) | ₹59.83 | ₹48.02 | 🔼 +24.6% |
| Final Dividend Proposed | ₹2.71/sh | (split-adjusted) |
💣 Balance Sheet Check
- Cash & Cash Equivalents: ₹5,28,539 lakh
- Total Assets: ₹27,94,868 lakh
- Equity: ₹7,93,988 lakh
- Trade Receivables: ₹1,06,721 lakh
- Provisions (FY25): ₹74,675 lakh — massive jump ⚠️
🔍 EduInvesting Audit Note:
That provision spike from ₹16,850L to ₹74,675L is wild. Either they’re preparing for ghost submarines or some hidden liability grenade is cooking.
💸 Dividend Math — Wait, Kitna Milega?
Total Dividend (FY25):
- 1st Interim: ₹11.595 per ₹5 FV (was ₹23.19 pre-split)
- 2nd Interim: ₹3.00 per ₹5 FV
- Final Recommended: ₹2.71 per share
👉 Total FY25 Dividend = ₹17.305 per share (FV ₹5)
🧮 Dividend Yield = ~0.46% at ₹3,773 CMP. (LOL.)
🔧 Operational Highlights
- Project delivery speeds up → Revenue jumps 20.7%
- Sub-contract expenses 3x’d YoY → ₹132,102L vs ₹38,244L (Why? Outsourcing more?)
- Employee cost up 9% → ₹97,875L
- Power & fuel? Stable. MDL doesn’t waste energy—unless it’s bureaucracy.
🔍 Red Flags
| Red Flag | EduInvesting Notes |
|---|---|
| 🚩 Provisions Explosion | ₹74K Lakh is too sus; need granular note |
| 🧱 Inventories Up 19.2% | Higher than revenue growth |
| 📉 Decline in Trade Payables | May signal tightening vendor terms |
| 🔄 Other Expenses Spiked | ₹32,377L → 65% jump — where is the control? |
🔮 Forward Fair Value (FV) Estimate
Let’s run conservative math based on FY25 earnings.
- EPS = ₹59.83
- Assume 15x P/E (Defence PSU avg)
- Fair Value = ₹897.45
⚠️ CMP is ₹3,773 — nearly 4.2x above FV!
🧨 Translation: If this wasn’t a PSU held by the Govt and LIC, this stock would have been raided by SEBI for such valuation.
🚀 Growth Outlook
- India’s defence budget rising steadily → Shipbuilding pipeline secured till 2030+
- International export orders possible, but minor contributor
- Strategic location + monopoly status in nuclear submarine builds → Strong moat
- Govt’s Atmanirbhar push = long-term positive
But…
- Execution delays? Frequent.
- Capacity constraints? Persistent.
- Competitive edge? Only because it’s sarkaari.
🧠 EduInvesting Take
“Mazagon Dock is like that cousin who tops in exams, gets Shaurya Chakra, and still lives with his parents at 35.”
- The numbers are stellar on paper — profit, cash, dividends all up.
- But the valuation is a fever dream. It’s trading at 4x its conservative FV.
- And the only reason it’s not questioned is because… it’s a defence PSU.
So unless you’re a Bharat Mata stan investor — understand this is less of a stock and more of a government bond with mood swings.
🧨 Final Verdict
- 🤑 Profits: Fantastic
- 💰 Cash Flow: Solid
- 🧾 Transparency: Medium
- 🚨 Valuation: Utter madness
- 🧠 Investment Case: Only if you’re in for national pride, not ROI
Tags: Mazagon Dock Q4 FY25, Mazagon Shipbuilders dividend 2025, Defence PSU stocks India, MDL FY25 results, Mazdock stock roast, Indian Navy shipyard profits, PSU multibagger or trap, EduInvesting Mazagon Dock
