Shares of Mazagon Dock Shipbuilders Ltd. gained over 6% on Wednesday, snapping a three-day losing streak. The stock had lost 9.51% since Aug. 16 after ICICI Securities retained a 'sell' call on the stock, citing the recent rally and steep valuation compared to fundamentals.
ICICI Securities kept the 'sell' call on the stock but raised the target price to Rs 1,165 apiece from Rs 900 apiece, implying a 72.90% downside from the previous close.
Additionally, Nirmal Bang Institutional Equities too downgraded the stock to 'sell' but raised the target price to Rs 4,143 apiece, implying a downside of 3.65% from the previous close.
Shares of Mazagon Dock rose as much as 6% to Rs 4,974.95 apiece. It was pared losses to trade 3.66% higher at Rs 4,457 as of 10:15 a.m.
The stock has gained 141.37% in the last 12 months and 97.4% on year to date basis. Total traded volume so far in the day stood at 5.4 times its 30-day average. The relative strength index was at 42.61.
Out of four analysts tracking the company, two maintain a 'buy' rating and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 74.3%.
Additionally, Mazagon Dock Shipbuilders led the recovery of most defence stocks on Wednesday, followed by Cochin Shipyard Ltd. and Garden Reach Shipbuilders & Engineers Ltd. with 4.58% and 5.00% intraday gains, respectively.
Paras Defence and Space Technologies Ltd. and PTC Industries Ltd. struggled to come out of the rout. The stocks were trading 0.17% and 0.51% lower, respectively.
Defence companies' market cap rose from Rs 11,339 crore to Rs 10.95 lakh crore as of 10:16 a.m.
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