Mazagon Dock Shares Hit Record After Navratna Status
The stock jumped as much as 7.48% during the day to Rs 4,271.20 apiece on the NSE.
Shares of Mazagon Dock Shipbuilders Ltd. jumped nearly 8% on Wednesday to an all-time high after it was granted the status of a Navratna.
The Department of Public Enterprises has approved the proposal in a letter dated June 25, according to an exchange filing.
The Union government grants Navratna status to public sector undertakings that hold Miniratna Category I status and consistently receive outstanding ratings. The Navratna status allows a company to invest up to Rs 1,000 crore or 15% of their net worth in a single project. It also has the liberty to engage in joint ventures, form alliances and establish overseas subsidiaries.
The company should also meet specific criteria in six key areas: net profit to net worth, profit before depreciation, interest and tax to capital employed, gross margin as capital expenditure, manpower cost to cost of production or services, gross profit as turnover, and earnings per share.
Mazagon's stock jumped as much as 7.48% during the day to Rs 4,271.20 apiece on the NSE. It was trading 4.3% higher at Rs 4,144.90 per share, compared to a 0.04% decline in the benchmark Nifty at 9:43 a.m.
The share price has risen 228.98% in the last 12 months and 82.21% on the year-to-date basis. The total traded volume so far in the day stood at 2.6 times its 30-day average. The relative strength index was at 71.17.
Three out of the four analysts tracking Mazagon have a 'buy' rating on the stock and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 78.3%.
