Mazagon Dock‘s share price was in the green as the company’s results for the September quarter beat Dalal Street estimates. Analysts at Antique Broking see the stock surging further.

The Mazagon Dock Analyst: The team of analysts at Antique Broking maintained its “buy” rating for the stock, raising the price target to ₹5,513 from ₹5,483 — an upside of around 31% from the stock’s last closing price of ₹4,197.80.

The Mazagon Dock Thesis: The analysts said Mazagon Dock's September-quarter standalone revenue surged 50.8% year on year to ₹2,760 crore, which was 31.2% above estimates. The growth was driven by the completion of major deliveries, including a submarine, a destroyer and a frigate, the brokerage added.

Standalone EBITDA stood at ₹510 crore, clocking a 189.1% year-on-year growth but a 20.5% quarter-on-quarter decline due to higher costs.

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The analysts also highlighted the company’s strong order book position. The current order book stands at ₹39,870 crore, which includes significant projects like P17A stealth frigates, P15B destroyers and six multi-purpose hybrid vessels for a European client.

The company's focus on securing next-generation corvettes and additional Scorpene and P75-I submarines indicates strong topline growth potential, the brokerage said.

The analysts also expect a planned capex of ₹4,000 crore-₹5,000 crore over the next four to five years, which is expected to nearly double Mazagon Dock's capacity. This will be facilitated by the recent acquisition of a 15-acre land parcel, which is intended to be developed for shipbuilding and repair.

Price Action: Mazdock’s share price was up 1.41% to trade at ₹4,256.95 in early trade on Wednesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.