Vishesh Kumar

FINANCIAL
MODELING REPORT
MAZAGON DOCK SHIPBUILDERS
LTD
BSE: 543237
NSE: MAZDOCK
 TABLE OF
CONTENTS
01 One Page Profile

02 Historical FS

03 Common Size Statement

04 Ratio Analysis

05 Forecasting

06 Beta Drifting

07 WACC

08 DCF Valuation

09 Comparable Comps

10 Football Field Analysis

11 DuPont Analysis

12 Altman Z Score

13 Forensic Analysis
 MAZAGON DOCK SHIPBUILDERS LTD - One Page Profile
Mazagon Dock Shipbuilders Limited is an India-based shipbuilding yard company. The Company is principally engaged in
building and repairing of ships, submarines, various types of vessels and related engineering products for its customers.
It is also engaged in the production of defense equipment. The Company is organized into two segments: Shipbuilding
(New Construction and Ship Repairs) and Submarine. Its Shipbuilding segment includes the building and repair of Naval
ships. Its Submarine division includes building, repair and refits of diesel and electric submarines for the Ministry of
Defense (MoD) for use by the Indian Navy.

Key Financial Metrics Mar-2021 Mar-2022 Mar-2023 Mar-2024 Share Price - 5Y

(in Cr.)
4500
Total Sales ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6
4000
Sales Growth (y-o-y) -17.47% 41.64% 36.52% 20.94% 3500
Gross Profit ₹ 1,159.2 ₹ 1,474.8 ₹ 1,892.2 ₹ 4,367.3 3000
GP Margins (%) 28.64% 25.72% 24.17% 46.13% 2500
EBITDA Margin (%) 5.59% 7.70% 10.23% 14.91% 2000
EBIT Margin (%) 15.18% 13.31% 18.04% 25.67% 1500
Net Profit Margins(%) 11.20% 9.82% 13.36% 19.11% 1000
Earnings Per Share (In Rs.) ₹ 22.5 ₹ 27.9 ₹ 51.9 ₹ 89.7 500
0
EPS Growth (y-o-y) 20.24% 24.18% 85.77% 72.92%
2020 2021 2021 2022 2023 2023 2024

Key Financial Ratios Mar-2021 Mar-2022 Mar-2023 Mar-2024 Share Volume - 5Y

(in Cr.)
800
Price to Earnings 9.44x 8.59x 12.78x 20.79x
EV/EBITDA -16.42x -15.04x 0.12x 16.57x 600
EV/Sales -0.92x -1.16x 0.01x 2.47x 400
Price to Book value 1.25x 1.25x 2.81x 6.02x 200
Return on Equity 13.21% 14.60% 21.98% 28.97%
0
Return on Capital Employed (%) 17.76% 19.72% 29.62% 38.91%
2020 2021 2021 2022 2022 2023 2023 2024

Top 10 Shareholders Shares Holding(%) Market Value Shareholding Pattern

Government of India 1 171.09 Cr 84.83% ₹ 6,66,262.51

Canara Robeco Asset Management Co. Ltd. 1 0.43 Cr 0.21% ₹ 1,682.10 Public 12.12%
Invesco Asset Management (India) Pvt Ltd. 1 0.38 Cr 0.19% ₹ 1,496.85
Edelweiss Asset Management Ltd. 1 0.36 Cr 0.18% ₹ 1,398.57 DIIs 0.67%
HDFC Asset Management Co. Ltd. (Invt Mgmt) 1 0.14 Cr 0.07% ₹ 553.39
Aditya Birla Sun Life Amc Ltd. (Investment Management)
1 0.12 Cr 0.06% ₹ 472.24 FIIs 2.38%
Capital Investment Trust Corp. 1 0.11 Cr 0.05% ₹ 409.91
ITI Asset Management Ltd. (India) 1 0.09 Cr 0.04% ₹ 352.60 Promoters 84.83%
Aditya Birla Sun Life Insurance Co. Ltd. 1 0.03 Cr 0.02% ₹ 135.16
0% 20% 40% 60% 80% 100%

Managerial Remuneration Designation % Change Median Salary Capital Structure

(in Cr.)
Sanjeev Singhal Chief Executive Officer 45% ₹ 77,00,000 Share Price ₹ 3,894.2
Biju George Director(Shipbuilding) 160% ₹ 64,00,000 Number Of Shares O/s 20.17
Jasbir Singh Director(Submarine) 41% ₹ 78,00,000 Market Capitalization ₹ 78,542.12
Vijayalakshmi Kamal Kumar Company Secretary 20% ₹ 29,00,000 Less: Cash ₹ 14,209.6
Add: Debt ₹ 0.9
Besides the remuneration indicated above, the Chairman and Managing Director and four Functional Directors are Add: Minority Interest -
allowed to use Company's Car for private purposes upto 1000 kms per month, for which charges were collected at the
Enterprise Value ₹ 64,333.42
rates prescribed by Government of India.

Important Information
1. Shipbuilding Expertise: MDL builds a variety of naval platforms, including frigates, destroyers, and submarines, and leads key projects such as the
Kalvari Class Submarines and P15B destroyers, with significant deliveries already completed.

2. Revenue Breakdown: In FY23, 98% of MDL's revenue came from ship construction, with an additional ₹300 crores from interest on advance
customer funds.

3. Robust Order Book: By Q3FY24, MDL's order book reached ₹38,390 crores, including new contracts for hybrid power vessels, an ONGC pipeline
project, and several defense-related vessels.

4. Manufacturing and Indigenization: MDL can concurrently build 11 submarines and 10 warships, with a strong emphasis on indigenization,
achieving 75% local content in warships to reduce costs.

5. Strategic Growth and R&D: MDL is enhancing R&D with AI-enabled inspections and underwater projects, diversifying into new segments like
cargo containers, and planning a greenfield shipyard at Nhava, Navi Mumbai.
MAZAGON DOCK SHIPBUILDERS LTD
NSE: MAZDOCK | BSE: 543237

HISTORICAL FINANCIAL STATEMENT

Income Statement
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales ₹ 3,605.3 ₹ 4,094.4 ₹ 3,504.8 ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6
Sales Growth 13.57% -14.40% 27.17% 3.52% 6.30% -17.47% 41.64% 36.52% 20.94%

COGS ₹ 2,351.6 ₹ 2,827.6 ₹ 2,290.4 ₹ 3,176.9 ₹ 3,408.3 ₹ 3,610.1 ₹ 2,888.6 ₹ 4,258.5 ₹ 5,935.0 ₹ 5,099.3
COGS % Sales 65.23% 69.06% 65.35% 71.28% 73.87% 73.60% 71.36% 74.28% 75.83% 53.87%

Gross Profit ₹ 1,253.7 ₹ 1,266.8 ₹ 1,214.4 ₹ 1,280.3 ₹ 1,205.7 ₹ 1,294.8 ₹ 1,159.2 ₹ 1,474.8 ₹ 1,892.2 ₹ 4,367.3
Gross Margin 34.77% 30.94% 34.65% 28.72% 26.13% 26.40% 28.64% 25.72% 24.17% 46.13%

Selling & General Expenses ₹ 1,031.4 ₹ 1,046.2 ₹ 1,084.9 ₹ 1,122.9 ₹ 944.7 ₹ 1,032.0 ₹ 932.9 ₹ 1,033.6 ₹ 1,091.5 ₹ 2,955.6
S&G Exp % Sales 28.61% 25.55% 30.96% 25.19% 20.47% 21.04% 23.05% 18.03% 13.95% 31.22%

EBITDA ₹ 222.3 ₹ 220.6 ₹ 129.5 ₹ 157.4 ₹ 261.0 ₹ 262.8 ₹ 226.3 ₹ 441.2 ₹ 800.6 ₹ 1,411.6
EBITDA Margins 6.17% 5.39% 3.69% 3.53% 5.66% 5.36% 5.59% 7.70% 10.23% 14.91%

Interest ₹ 8.3 ₹ 16.0 ₹ 17.4 ₹ 19.7 ₹ 35.6 ₹ 13.1 ₹ 10.8 ₹ 13.7 ₹ 9.2 ₹ 5.1
Interest % Sales 0.23% 0.39% 0.50% 0.44% 0.77% 0.27% 0.27% 0.24% 0.12% 0.05%

Deprectiation ₹ 30.9 ₹ 43.8 ₹ 39.4 ₹ 52.5 ₹ 64.3 ₹ 68.8 ₹ 59.7 ₹ 74.5 ₹ 75.6 ₹ 83.1
Deprectiation % Sales 0.86% 1.07% 1.12% 1.18% 1.39% 1.40% 1.47% 1.30% 0.97% 0.88%
Other Income ₹ 562.8 ₹ 761.2 ₹ 766.3 ₹ 565.2 ₹ 617.0 ₹ 545.8 ₹ 448.0 ₹ 396.3 ₹ 686.8 ₹ 1,101.5
EBT ₹ 746.0 ₹ 921.9 ₹ 838.9 ₹ 650.4 ₹ 778.1 ₹ 726.8 ₹ 603.8 ₹ 749.3 ₹ 1,402.7 ₹ 2,424.8
EBT % Sales 20.69% 22.52% 23.94% 14.59% 16.86% 14.82% 14.92% 13.07% 17.92% 25.61%

Tax ₹ 254.4 ₹ 360.8 ₹ 314.2 ₹ 256.8 ₹ 307.7 ₹ 349.6 ₹ 150.4 ₹ 186.2 ₹ 356.6 ₹ 616.0
Effective Tax Rate 34.10% 39.14% 37.46% 39.49% 39.55% 48.11% 24.90% 24.85% 25.42% 25.40%

Net Profit ₹ 491.6 ₹ 561.1 ₹ 524.7 ₹ 393.6 ₹ 470.4 ₹ 377.2 ₹ 453.5 ₹ 563.1 ₹ 1,046.1 ₹ 1,808.9
Net Profit Margin 13.64% 13.70% 14.97% 8.83% 10.19% 7.69% 11.20% 9.82% 13.36% 19.11%

No. of Equity Shares (in Cr) 1.99 1.99 2.49 22.41 22.41 20.17 20.17 20.17 20.17 20.17

Earnings Per Share ₹ 247.0 ₹ 281.9 ₹ 210.7 ₹ 17.6 ₹ 21.0 ₹ 18.7 ₹ 22.5 ₹ 27.9 ₹ 51.9 ₹ 89.7
EPS Growth 14.13% -25.26% -91.67% 19.51% -10.92% 20.24% 24.18% 85.77% 72.92%

Dividend Per Share ₹ 50.1 ₹ 50.3 ₹ 80.0 ₹ 11.0 ₹ 4.5 ₹ 10.8 ₹ 7.2 ₹ 8.7 ₹ 16.0 ₹ 15.3
Dividend Payout Ratio 20.26% 17.82% 37.96% 62.35% 21.26% 57.60% 32.20% 31.27% 30.77% 17.10%

Retained Earnings 79.74% 82.18% 62.04% 37.65% 78.74% 42.40% 67.80% 68.73% 69.23% 82.90%

Balance Sheet
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Equity Share Capital ₹ 199.2 ₹ 199.2 ₹ 249.0 ₹ 224.1 ₹ 224.1 ₹ 201.7 ₹ 201.7 ₹ 201.7 ₹ 201.7 ₹ 201.7
Reserves ₹ 2,553.5 ₹ 2,442.4 ₹ 2,730.0 ₹ 2,610.0 ₹ 2,992.8 ₹ 2,857.7 ₹ 3,230.0 ₹ 3,656.0 ₹ 4,558.5 ₹ 6,041.8
Borrowings ₹ 83.2 - - - - - ₹ 29.7 ₹ 11.6 ₹ 6.0 ₹ 0.9
Other Liabilities ₹ 28,397.4 ₹ 16,386.0 ₹ 16,366.0 ₹ 16,539.8 ₹ 17,633.2 ₹ 17,883.4 ₹ 21,679.1 ₹ 25,903.5 ₹ 24,709.5 ₹ 23,204.4
Total Liabilities ₹ 31,233.4 ₹ 19,027.6 ₹ 19,345.0 ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8

Net Block in Fixed Assets ₹ 265.8 ₹ 367.8 ₹ 546.3 ₹ 705.3 ₹ 810.3 ₹ 836.4 ₹ 806.9 ₹ 964.6 ₹ 1,024.3 ₹ 841.3
Capital Work in Progress ₹ 40.1 ₹ 169.6 ₹ 98.4 ₹ 85.4 ₹ 88.8 ₹ 80.0 ₹ 80.2 ₹ 86.9 ₹ 61.6 ₹ 68.2
Investments ₹ 298.9 ₹ 324.2 ₹ 376.2 ₹ 429.2 ₹ 430.7 ₹ 484.2 ₹ 518.7 ₹ 542.3 ₹ 588.6 ₹ 678.8
Other Assets ₹ 3,719.8 ₹ 4,196.5 ₹ 5,183.0 ₹ 6,061.6 ₹ 6,785.3 ₹ 7,686.6 ₹ 8,850.4 ₹ 7,990.3 ₹ 6,143.0 ₹ 6,090.5
Total Non Current Assets ₹ 4,324.6 ₹ 5,058.1 ₹ 6,203.8 ₹ 7,281.4 ₹ 8,115.1 ₹ 9,087.1 ₹ 10,256.1 ₹ 9,584.2 ₹ 7,817.6 ₹ 7,678.9

Receivables ₹ 748.5 ₹ 919.7 ₹ 746.2 ₹ 1,113.4 ₹ 1,472.9 ₹ 1,432.8 ₹ 965.9 ₹ 1,005.4 ₹ 1,002.3 ₹ 1,846.9
Inventory ₹ 18,541.9 ₹ 4,247.1 ₹ 4,032.1 ₹ 3,789.4 ₹ 3,792.5 ₹ 4,624.6 ₹ 5,890.5 ₹ 7,702.8 ₹ 7,369.4 ₹ 5,713.4
Cash & Bank ₹ 7,618.3 ₹ 8,802.8 ₹ 8,362.9 ₹ 7,189.6 ₹ 7,469.7 ₹ 5,798.3 ₹ 8,027.9 ₹ 11,480.5 ₹ 13,286.4 ₹ 14,209.6
Total Current Assets ₹ 26,908.7 ₹ 13,969.6 ₹ 13,141.2 ₹ 12,092.4 ₹ 12,735.1 ₹ 11,855.7 ₹ 14,884.4 ₹ 20,188.7 ₹ 21,658.1 ₹ 21,769.9

Total Assets ₹ 31,233.4 ₹ 19,027.6 ₹ 19,345.0 ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

HISTORICAL FINANCIAL STATEMENT

Cash Flow Statement

Year Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Profit from operations - ₹ 293.0 ₹ 242.0 ₹ 218.0 ₹ 299.0 ₹ 269.0 ₹ 303.0 ₹ 474.0 ₹ 870.0 ₹ 1,506.0
Receivables - ₹ 545.0 ₹ 229.0 (₹ 298.0) (₹ 357.0) ₹ 46.0 ₹ 471.0 (₹ 38.0) ₹ 8.0 (₹ 860.0)
Inventory - (₹ 1,784.0) ₹ 216.0 ₹ 243.0 (₹ 4.0) (₹ 832.0) (₹ 1,266.0) (₹ 1,811.0) ₹ 343.0 ₹ 1,643.0
Payables - ₹ 2,029.0 (₹ 161.0) ₹ 1,434.0 ₹ 468.0 ₹ 1,830.0 ₹ 1,106.0 (₹ 529.0) (₹ 1,802.0) ₹ 24.0
Loans Advances - (₹ 36.0) - - - - - - - -
Other WC items - ₹ 9.0 (₹ 1,183.0) (₹ 799.0) (₹ 25.0) (₹ 1,200.0) (₹ 390.0) ₹ 2,043.0 ₹ 1,750.0 (₹ 953.0)
Working capital changes - ₹ 763.0 (₹ 898.0) ₹ 580.0 ₹ 82.0 (₹ 157.0) (₹ 78.0) (₹ 335.0) ₹ 300.0 (₹ 145.0)
Direct taxes - (₹ 310.0) (₹ 346.0) (₹ 307.0) (₹ 316.0) (₹ 208.0) (₹ 157.0) (₹ 302.0) (₹ 312.0) (₹ 677.0)
Cash from Operating Activity - ₹ 1,509.0 (₹ 1,901.0) ₹ 1,071.0 ₹ 147.0 (₹ 252.0) (₹ 11.0) (₹ 498.0) ₹ 1,157.0 ₹ 538.0

Fixed assets purchased - (₹ 107.0) (₹ 218.0) (₹ 193.0) (₹ 172.0) (₹ 110.0) (₹ 42.0) (₹ 34.0) (₹ 141.0) (₹ 431.0)
Fixed assets sold - - ₹ 1.0 - - - - ₹ 1.0 ₹ 1.0 ₹ 105.0
Interest received - ₹ 684.0 ₹ 633.0 ₹ 483.0 ₹ 541.0 ₹ 528.0 ₹ 368.0 ₹ 347.0 ₹ 602.0 ₹ 994.0
Dividends received - ₹ 7.0 ₹ 9.0 ₹ 47.0 ₹ 47.0 ₹ 31.0 ₹ 26.0 ₹ 23.0 ₹ 27.0 ₹ 37.0
Other investing items - - (₹ 2.0) (₹ 2.0) ₹ 3.0 (₹ 5.0) (₹ 4.0) (₹ 5.0) (₹ 6.0) ₹ 725.0
Cash from Investing Activity - ₹ 584.0 ₹ 423.0 ₹ 335.0 ₹ 419.0 ₹ 444.0 ₹ 348.0 ₹ 332.0 ₹ 483.0 ₹ 1,430.0

Proceeds from borrowings - ₹ 2.0 - - - - - - - -

Interest paid fin - - - - - - (₹ 5.0) (₹ 3.0) (₹ 2.0) (₹ 1.0)
Dividends paid - (₹ 120.0) (₹ 240.0) (₹ 295.0) (₹ 121.0) (₹ 262.0) (₹ 155.0) (₹ 180.0) (₹ 216.0) (₹ 448.0)
Financial liabilities - - (₹ 5.0) (₹ 5.0) (₹ 5.0) (₹ 5.0) - - - -
Other financing items - - - (₹ 307.0) - (₹ 337.0) - - - -
Cash from Financing Activity - (₹ 118.0) (₹ 245.0) (₹ 607.0) (₹ 126.0) (₹ 604.0) (₹ 160.0) (₹ 183.0) (₹ 218.0) (₹ 449.0)

Net Cash Flow - ₹ 1,975.0 (₹ 1,723.0) ₹ 799.0 ₹ 440.0 (₹ 412.0) ₹ 177.0 (₹ 349.0) ₹ 1,422.0 ₹ 1,519.0
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

COMMON SIZE STATEMENT

Income Statement
Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 57.95% 60.85% 53.70% 55.52% 56.28% 50.00% 46.49% 46.97% 56.80% 53.68%
Change in Inventory 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Power and Fuel 0.75% 0.69% 0.74% 0.51% 0.42% 0.34% 0.28% 0.31% 0.24% 0.19%
Other Mfr. Exp 6.52% 7.52% 10.91% 15.24% 17.17% 23.26% 24.59% 26.99% 18.78% 0.00%
Employee Cost 19.43% 18.43% 20.47% 19.87% 14.95% 15.92% 16.13% 13.93% 10.13% 9.47%
Selling and admin 8.76% 6.55% 6.54% 4.17% 2.66% 3.76% 5.75% 1.95% 1.94% 0.00%
Other Expenses 0.42% 0.57% 3.94% 1.15% 2.87% 1.36% 1.17% 2.14% 1.88% 21.75%
Other Income 15.61% 18.59% 21.86% 12.68% 13.37% 11.13% 11.07% 6.91% 8.77% 11.64%
Depreciation 0.86% 1.07% 1.12% 1.18% 1.39% 1.40% 1.47% 1.30% 0.97% 0.88%
Interest 0.23% 0.39% 0.50% 0.44% 0.77% 0.27% 0.27% 0.24% 0.12% 0.05%
Profit before tax 20.69% 22.52% 23.94% 14.59% 16.86% 14.82% 14.92% 13.07% 17.92% 25.61%
Tax 7.06% 8.81% 8.97% 5.76% 6.67% 7.13% 3.71% 3.25% 4.56% 6.51%
Net profit 14.31% 14.55% 16.69% 11.13% 11.54% 9.59% 12.69% 10.65% 14.30% 20.46%
Dividend Amount 2.76% 2.44% 5.68% 5.51% 2.17% 4.43% 3.61% 3.07% 4.11% 3.27%
EBITDA 6.17% 5.39% 3.69% 3.53% 5.66% 5.36% 5.59% 7.70% 10.23% 14.91%

Balance Sheet
Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.64% 1.05% 1.29% 1.16% 1.07% 0.96% 0.80% 0.68% 0.68% 0.68%
Reserves 8.18% 12.84% 14.11% 13.47% 14.35% 13.65% 12.85% 12.28% 15.47% 20.52%
Borrowings 0.27% 0.00% 0.00% 0.00% 0.00% 0.00% 0.12% 0.04% 0.02% 0.00%
Other Liabilities 90.92% 86.12% 84.60% 85.37% 84.57% 85.39% 86.23% 87.00% 83.83% 78.80%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 0.85% 1.93% 2.82% 3.64% 3.89% 3.99% 3.21% 3.24% 3.48% 2.86%
Capital Work in Progress 0.13% 0.89% 0.51% 0.44% 0.43% 0.38% 0.32% 0.29% 0.21% 0.23%
Investments 0.96% 1.70% 1.94% 2.22% 2.07% 2.31% 2.06% 1.82% 2.00% 2.30%
Other Assets 11.91% 22.05% 26.79% 31.29% 32.54% 36.70% 35.20% 26.84% 20.84% 20.68%
Receivables 2.40% 4.83% 3.86% 5.75% 7.06% 6.84% 3.84% 3.38% 3.40% 6.27%
Inventory 59.37% 22.32% 20.84% 19.56% 18.19% 22.08% 23.43% 25.87% 25.00% 19.40%
Cash & Bank 24.39% 46.26% 43.23% 37.11% 35.83% 27.69% 31.93% 38.56% 45.08% 48.25%
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

RATIO ANALYSIS
Year Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trend Mean Median

SalesGrowth - 13.57% -14.40% 27.17% 3.52% 6.30% -17.47% 41.64% 36.52% 20.94% 13.09% 13.57%
EBITDA Growth - -0.78% -41.30% 21.56% 65.85% 0.66% -13.88% 94.97% 81.46% 76.32% 31.65% 21.56%
EBIT Growth - 23.58% -9.00% -22.47% 19.63% -6.60% -16.92% 24.10% 87.19% 72.87% 19.15% 19.63%
Net Profit Growth - 14.13% -6.48% -24.99% 19.51% -19.82% 20.24% 24.18% 85.77% 72.92% 20.61% 19.51%
Dividend Growth - 0.40% 59.20% -86.31% -59.25% 141.37% -32.78% 20.59% 82.81% -3.89% 13.57% 0.40%

Gross Margin 34.77% 30.94% 34.65% 28.72% 26.13% 26.40% 28.64% 25.72% 24.17% 46.13% 30.63% 28.68%
EBITDA Margin 6.17% 5.39% 3.69% 3.53% 5.66% 5.36% 5.59% 7.70% 10.23% 14.91% 6.82% 5.62%
EBIT Margin 20.92% 22.91% 24.43% 15.03% 17.64% 15.08% 15.18% 13.31% 18.04% 25.67% 18.82% 17.84%
EBT Margin 20.69% 22.52% 23.94% 14.59% 16.86% 14.82% 14.92% 13.07% 17.92% 25.61% 18.49% 17.39%
Net Profit Margin 13.64% 13.70% 14.97% 8.83% 10.19% 7.69% 11.20% 9.82% 13.36% 19.11% 12.25% 12.28%

Sales Exp % Sales 28.61% 25.55% 30.96% 25.19% 20.47% 21.04% 23.05% 18.03% 13.95% 31.22% 23.81% 24.12%
Depreciation % Sales 0.86% 1.07% 1.12% 1.18% 1.39% 1.40% 1.47% 1.30% 0.97% 0.88% 1.16% 1.15%
Operating Inc % Sales 20.92% 22.91% 24.43% 15.03% 17.64% 15.08% 15.18% 13.31% 18.04% 25.67% 18.82% 17.84%

Return on Capital Employed 26.60% 35.51% 28.75% 23.65% 25.29% 24.18% 17.76% 19.72% 29.62% 38.91% 27.00% 25.95%
Retained Earnings % 79.74% 82.18% 62.04% 37.65% 78.74% 42.40% 67.80% 68.73% 69.23% 82.90% 67.14% 68.98%
Return on Equity % 17.86% 21.24% 17.61% 13.89% 14.62% 12.33% 13.21% 14.60% 21.98% 28.97% 17.63% 16.12%
Self Sustained Growth Rate 14.24% 17.45% 10.93% 5.23% 11.51% 5.23% 8.96% 10.03% 15.21% 24.02% 12.28% 11.22%
Interest Coverage Ratio 90.99x 58.51x 49.13x 33.98x 22.86x 56.61x 57.01x 55.86x 153.80x 474.60x 105.33x 56.81x

Debtor Turnover Ratio 4.82x 4.45x 4.70x 4.00x 3.13x 3.42x 4.19x 5.70x 7.81x 5.13x 4.74x 4.57x
Creditor Turnover Ratio 0.13x 0.25x 0.21x 0.27x 0.26x 0.27x 0.19x 0.22x 0.32x 0.41x 0.25x 0.26x
Inventory Turnover 0.19x 0.96x 0.87x 1.18x 1.22x 1.06x 0.69x 0.74x 1.06x 1.66x 0.96x 1.01x
Fixed Asset Turnover 13.56x 11.13x 6.42x 6.32x 5.69x 5.86x 5.02x 5.94x 7.64x 11.25x 7.88x 6.37x
Capital Turnover Ratio 1.31x 1.55x 1.18x 1.57x 1.43x 1.60x 1.18x 1.49x 1.64x 1.52x 1.45x 1.50x

(in days)
Debtor Days 76 82 78 91 117 107 87 64 47 71 82 80
Payable Days 2875 1461 1704 1354 1395 1331 1955 1649 1152 895 1577 1428
Inventory Days 1877 379 420 310 300 344 531 490 344 220 522 361
Cash Conversion Cycle (in days) -922 -1000 -1207 -953 -978 -880 -1337 -1095 -762 -603 -974 -966

CFO/Sales 0.00% 18.22% -28.61% 11.01% 1.41% -1.95% 1.69% -2.84% 10.96% 7.22% 1.71% 1.55%
CFO/Total Assets 0.00% 3.92% -5.18% 2.53% 0.31% -0.46% 0.27% -0.55% 2.91% 2.32% 0.61% 0.29%
CFO/Total Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 229.97% -1397.16% 14198.68% 73521.51% ####### 0.00%
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

FORECASTING
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2015A ₹ 3,605.3 1 2015A ₹ 222.3
2 2016A ₹ 4,094.4 13.57% 2 2016A ₹ 220.6 -0.78%
3 2017A ₹ 3,504.8 -14.40% 3 2017A ₹ 129.5 -41.30%
4 2018A ₹ 4,457.2 27.17% 4 2018A ₹ 157.4 21.56%
5 2019A ₹ 4,614.0 3.52% 5 2019A ₹ 261.0 65.85%
6 2020A ₹ 4,904.8 6.30% 6 2020A ₹ 262.8 0.66%
7 2021A ₹ 4,047.8 -17.47% 7 2021A ₹ 226.3 -13.88%
8 2022A ₹ 5,733.3 41.64% 8 2022A ₹ 441.2 94.97%
9 2023A ₹ 7,827.2 36.52% 9 2023A ₹ 800.6 81.46%
10 2024A ₹ 9,466.6 20.94% 10 2024A ₹ 1,411.6 76.32%
11 2025F ₹ 8,195.1 -13.43% 11 2025F ₹ 964.4 -31.68%
12 2026F ₹ 8,735.0 6.59% 12 2026F ₹ 1,064.5 10.39%
13 2027F ₹ 9,274.9 6.18% 13 2027F ₹ 1,164.7 9.41%
14 2028F ₹ 9,814.8 5.82% 14 2028F ₹ 1,264.9 8.60%
15 2029F ₹ 10,354.7 5.50% 15 2029F ₹ 1,365.1 7.92%

Sales Growth EBITDA Growth

₹ 12,000.0 ₹ 1,600.0
₹ 1,400.0
₹ 10,000.0
₹ 1,200.0
₹ 8,000.0
₹ 1,000.0
₹ 6,000.0 ₹ 800.0
₹ 4,000.0 ₹ 600.0
₹ 400.0
₹ 2,000.0
₹ 200.0
0 0

Year Weight Year Net Profit Net Profit Growth Year Weight Year EPS EPS Growth
1 2015A ₹ 491.6 1 2015A ₹ 247.0
2 2016A ₹ 561.1 14.13% 2 2016A ₹ 281.9 14.13%
3 2017A ₹ 524.7 -6.48% 3 2017A ₹ 210.7 -25.26%
4 2018A ₹ 393.6 -24.99% 4 2018A ₹ 17.6 -91.67%
5 2019A ₹ 470.4 19.51% 5 2019A ₹ 21.0 19.51%
6 2020A ₹ 377.2 -19.82% 6 2020A ₹ 18.7 -10.92%
7 2021A ₹ 453.5 20.24% 7 2021A ₹ 22.5 20.24%
8 2022A ₹ 563.1 24.18% 8 2022A ₹ 27.9 24.18%
9 2023A ₹ 1,046.1 85.77% 9 2023A ₹ 51.9 85.77%
10 2024A ₹ 1,808.9 72.92% 10 2024A ₹ 89.7 72.92%
11 2025F ₹ 1,186.6 -34.40% 11 2025F ₹ 76.6 -14.54%
12 2026F ₹ 1,280.8 7.93% 12 2026F ₹ 86.9 13.39%
13 2027F ₹ 1,374.9 7.35% 13 2027F ₹ 97.2 11.81%
14 2028F ₹ 1,469.0 6.85% 14 2028F ₹ 107.4 10.56%
15 2029F ₹ 1,563.1 6.41% 15 2029F ₹ 117.7 9.55%

Net Profit Growth EPS Growth

₹ 2,000.0 ₹ 300.0

₹ 250.0
₹ 1,500.0
₹ 200.0
₹ 1,000.0 ₹ 150.0

₹ 100.0
₹ 500.0
₹ 50.0
0 0
2025F
2026F
2027F
2028F
2029F
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
 MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

BETA REGRESSION
Regression Beta - 2 Years Weekly
MAZAGON DOCK SHIPBUILDERS LTD Weekly Returns Nifty Weekly Returns Beta Drifting
Date Closing Price Returns Closing Price Returns Levered Raw Beta 1.98
20-06-2022 ₹ 239.0 15699.25 Raw Beta Weight 75.00%
27-06-2022 ₹ 241.8 1.16% 15752.05 0.34%
04-07-2022 ₹ 256.6 6.13% 16220.60 2.97% Market Beta 1.00
11-07-2022 ₹ 253.1 -1.37% 16049.20 -1.06% Market Beta Weight 25.00%
18-07-2022 ₹ 268.0 5.87% 16719.45 4.18%
25-07-2022 ₹ 271.2 1.20% 17158.25 2.62% Adjusted Beta 1.73
01-08-2022 ₹ 270.4 -0.27% 17397.50 1.39%
08-08-2022 ₹ 303.7 12.29% 17698.15 1.73%
15-08-2022 ₹ 298.4 -1.73% 17758.45 0.34%
22-08-2022 ₹ 345.1 15.64% 17558.90 -1.12%
29-08-2022 ₹ 387.3 12.24% 17539.45 -0.11%
05-09-2022 ₹ 410.7 6.04% 17833.35 1.68%
12-09-2022 ₹ 419.4 2.12% 17530.85 -1.70%
19-09-2022 ₹ 436.1 3.96% 17327.35 -1.16%
26-09-2022 ₹ 482.7 10.69% 17094.35 -1.34%
03-10-2022 ₹ 619.1 28.27% 17314.65 1.29%
10-10-2022 ₹ 612.2 -1.11% 17185.70 -0.74%
17-10-2022 ₹ 626.3 2.30% 17576.30 2.27%
24-10-2022 ₹ 626.9 0.09% 17786.80 1.20%
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

WACC
All figures are in INR unless stated otherwise.

Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3
Mazagon Dock India ₹ 0.9 ₹ 6,243.5 30.00% 0.01% 0.01% 1.73 1.73
Cochin Shipyard India ₹ 488.8 ₹ 5,025.9 30.00% 9.73% 8.86% 1.65 1.54
Garden Reach Sh. India ₹ 65.7 ₹ 1,673.4 30.00% 3.92% 3.78% 1.79 1.74

Average 30.00% 4.55% 4.22% 1.72 1.67

Median 30.00% 3.92% 3.78% 1.73 1.73

Cost of Debt Cost of Equity

Pre-tax Cost of Debt 550.54% Risk Free Rate 6.99%

Tax Rate 30.00% Equity Risk Premium 9.78%
4
After Tax Cost of Debt 385.38% Levered Beta 1.78
Cost of Equity 24.43%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 1.73

Total Debt ₹ 0.9 0.01% 4.22% Target Debt/ Equity 4.40%
Total Equity ₹ 6,243.5 99.99% 95.78% Tax Rate 30.00%
Total Capitalization ₹ 6,244.4 100.00% 100.00% Levered Beta 1.78

Debt / Equity 0.01% 4.40% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 24.43%
2. Levered Beta is based on 5 year monthly data Equity Weight 95.78%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
4. Levered Beta = Unlevered Beta x (1+(1-Tax Rate) x Debt/Equity) Cost of Debt 385.38%
Debt Weight 4.22%

WACC 39.65%
 MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

Intrinsic Growth
# Calculation of ROIC Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Current Assets
Inventories ₹ 3,789.0 ₹ 3,792.0 ₹ 4,625.0 ₹ 5,891.0 ₹ 7,703.0 ₹ 7,369.0
Trade receivables ₹ 1,113.0 ₹ 1,473.0 ₹ 1,433.0 ₹ 966.0 ₹ 1,005.0 ₹ 1,002.0
Short term loans ₹ 1.0 ₹ 4.0 ₹ 2.0 ₹ 1.0 ₹ 1.0 ₹ 2.0
Other asset items ₹ 6,060.0 ₹ 6,781.0 ₹ 7,684.0 ₹ 8,849.0 ₹ 7,989.0 ₹ 6,141.0
Total Current Assets ₹ 10,963.0 ₹ 12,050.0 ₹ 13,744.0 ₹ 15,707.0 ₹ 16,698.0 ₹ 14,514.0

Current Liabilities
Trade Payables ₹ 2,391.0 ₹ 2,917.0 ₹ 4,728.0 ₹ 6,362.0 ₹ 6,166.0 ₹ 4,463.0
Advance from Customers - - - - - -
Other liability items ₹ 14,149.0 ₹ 14,716.0 ₹ 13,155.0 ₹ 15,317.0 ₹ 19,738.0 ₹ 20,247.0
Total Current Liabilities ₹ 16,540.0 ₹ 17,633.0 ₹ 17,883.0 ₹ 21,679.0 ₹ 25,904.0 ₹ 24,710.0

Net Working Capital (₹ 5,577.0) (₹ 5,583.0) (₹ 4,139.0) (₹ 5,972.0) (₹ 9,206.0) (₹ 10,196.0)

Non-Curent Assets
Land ₹ 134.2 ₹ 184.2 ₹ 194.9 ₹ 194.9 ₹ 391.4 ₹ 391.4
Building ₹ 249.7 ₹ 268.8 ₹ 288.7 ₹ 315.4 ₹ 322.5 ₹ 418.6
Plant Machinery ₹ 274.5 ₹ 293.3 ₹ 322.6 ₹ 323.2 ₹ 333.8 ₹ 344.9
Equipments ₹ 45.8 ₹ 93.5 ₹ 111.2 ₹ 114.4 ₹ 116.0 ₹ 119.9
Furniture n fittings ₹ 37.7 ₹ 43.2 ₹ 48.5 ₹ 53.3 ₹ 56.0 ₹ 58.6
Vehicles ₹ 19.2 ₹ 19.5 ₹ 23.9 ₹ 24.6 ₹ 24.6 ₹ 27.1
Intangible Assets - - - - - -
Other fixed assets ₹ 89.6 ₹ 104.3 ₹ 99.9 ₹ 102.8 ₹ 107.6 ₹ 121.3

Gross Block ₹ 850.6 ₹ 1,006.6 ₹ 1,089.7 ₹ 1,128.6 ₹ 1,351.8 ₹ 1,481.7

Accumulated Depreciation (₹ 145.2) (₹ 196.3) (₹ 253.3) (₹ 321.7) (₹ 387.1) (₹ 457.4)
Net Non-Current Assets ₹ 705.3 ₹ 810.3 ₹ 836.4 ₹ 806.9 ₹ 964.6 ₹ 1,024.3

Invested Capital (₹ 4,871.7) (₹ 4,772.7) (₹ 3,302.7) (₹ 5,165.2) (₹ 8,241.4) (₹ 9,171.7)

EBIT ₹ 670.1 ₹ 813.7 ₹ 739.9 ₹ 614.6 ₹ 763.0 ₹ 1,411.9

ROIC -13.76% -17.05% -22.40% -11.90% -9.26% -15.39%

# Calculation of Reinvestment Rate Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net Capex ₹ 193.0 ₹ 172.0 ₹ 110.0 ₹ 42.0 ₹ 33.0 ₹ 140.0
Changes in Working Capital - (₹ 6.0) ₹ 1,444.0 (₹ 1,833.0) (₹ 3,234.0) (₹ 990.0)

EBIT ₹ 670.1 ₹ 813.7 ₹ 739.9 ₹ 614.6 ₹ 763.0 ₹ 1,411.9

Marginal Tax Rate 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
EBIT(1-Tax) ₹ 469.1 ₹ 569.6 ₹ 517.9 ₹ 430.2 ₹ 534.1 ₹ 988.3

Reinvestment ₹ 166.0 ₹ 1,554.0 (₹ 1,791.0) (₹ 3,201.0) (₹ 850.0)

Reinvestment Rate 29.14% 300.06% -416.30% -599.33% -86.01%

5 Years Average -154.49%

5 Years Median -86.01%

# Calculation of Growth Rate Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 29.14% 300.06% -416.30% -599.33% -86.01%

ROIC -17.05% -22.40% -11.90% -9.26% -15.39%

Intrinsic Growth -4.97% -67.22% 49.54% 55.49% 13.24%

5 Years Average 9.21%

5 Years Median 13.24%
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

DCF Valuation
Calculation of PV of FCFF 2024A 2025F 2026F 2027F 2028F 2029F
EBIT ₹ 2,430.0 ₹ 2,895.3 ₹ 3,449.7 ₹ 4,110.4 ₹ 4,897.5 ₹ 5,835.4
Tax Rate 30% 30% 30% 30% 30% 30%
NOPAT ₹ 1,701.0 ₹ 2,026.7 ₹ 2,414.8 ₹ 2,877.2 ₹ 3,428.2 ₹ 4,084.8
Add: D&A ₹ 83.1 ₹ 99.0 ₹ 118.0 ₹ 140.6 ₹ 167.5 ₹ 199.6
Changes in WC ₹ 643.0 ₹ 766.1 ₹ 912.8 ₹ 1,087.7 ₹ 1,295.9 ₹ 1,544.1
Less: Net Capex (₹ 326.0) (₹ 388.4) (₹ 462.8) (₹ 551.4) (₹ 657.0) (₹ 782.9)
Free Cash Flow to Firm (FCFF) ₹ 2,101.1 ₹ 2,503.5 ₹ 2,982.9 ₹ 3,554.1 ₹ 4,234.7 ₹ 5,045.6
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.846 0.606 0.434 0.311 0.222
PV of FCFF ₹ 2,118.4 ₹ 1,807.4 ₹ 1,542.1 ₹ 1,315.7 ₹ 1,122.5

Expected Growth 1 19.15%

Terminal Growth 2 6.80%
WACC 39.65% Sensitivity Analysis - Enterprise Value
WACC
Calculation of Terminal Value ₹ 12,253.9 38% 40% 42% 44%
6% ₹ 12,348.4 ₹ 12,086.0 ₹ 11,852.8 ₹ 11,644.3
FCFF(N+1) ₹ 6,011.9 7% ₹ 12,535.7 ₹ 12,253.9 ₹ 12,004.4 ₹ 11,782.0
WACC 39.65% 8% ₹ 12,735.6 ₹ 12,432.4 ₹ 12,165.0 ₹ 11,927.4
Terminal Growth 6.80% 9% ₹ 12,949.4 ₹ 12,622.4 ₹ 12,335.3 ₹ 12,081.2
Terminal Value ₹ 19,543.5 GROWTH

Caculation of Equity Value per Share

PV of FCFF ₹ 7,906.1 Sensitivity Analysis - Equity Value per Share

PV of Terminal Value ₹ 4,347.8 WACC
Enterprise Value ₹ 12,253.9 ₹ 1,266.3 38% 40% 42% 60%
6% ₹ 1,271.0 ₹ 1,257.9 ₹ 1,246.4 ₹ 1,181.0
Add: Cash ₹ 13,286.4 7% ₹ 1,280.2 ₹ 1,266.3 ₹ 1,253.9 ₹ 1,184.7
Less: Debt ₹ 0.9 8% ₹ 1,290.2 ₹ 1,275.1 ₹ 1,261.9 ₹ 1,188.6
Equity Value ₹ 25,539.4 9% ₹ 1,300.8 ₹ 1,284.5 ₹ 1,270.3 ₹ 1,192.6
No of Shares (in Cr.) 20.17 GROWTH

Equity Value per Share ₹ 1,266.3

Share Price ₹ 3,894.2 1. The reinvestment rate and growth rate are taken from the NYU Stern report on the Indian sector, updated in January 2024.
Discount/Premium 3.08x 2. The terminal growth rate is based on India's long term GDP growth rate.
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )
Amount in Crores

COMPARABLE COMPANY VALUATION

Market Data Financials Valuation
Share Shares Equity Enterprise
Company Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/Sales EV/EBITDA P/E
Mazagon Dock ₹ 3,894.2 20.17 Cr ₹ 78,546.0 (₹ 14,208.7) ₹ 64,337.3 ₹ 9,466.6 ₹ 3,068.2 ₹ 1,937.0 6.80x 20.97x 40.55x
Cochin Shipyard ₹ 2,132.3 26.31 Cr ₹ 56,099.5 (₹ 3,295.2) ₹ 52,804.3 ₹ 3,645.3 ₹ 1,255.9 ₹ 813.1 14.49x 42.05x 68.99x
Garden Reach Sh. ₹ 1,644.3 11.46 Cr ₹ 18,843.1 (₹ 3,654.7) ₹ 15,188.4 ₹ 3,592.6 ₹ 662.6 ₹ 357.3 4.23x 22.92x 52.74x

High 14.49x 42.05x 68.99x

75th Percentile 10.64x 32.49x 60.87x
Average 8.50x 28.65x 54.10x
Median 6.80x 22.92x 52.74x
25th Percentile 5.51x 21.95x 46.65x
Low 4.23x 20.97x 40.55x

MAZAGON DOCK SHIPBUILDERS LTD Comparable Valuation EV/Sales EV/EBITDA P/E

Implied Enterprise Value ₹ 64,337.3 ₹ 70,335.5 ₹ 87,950.8
Net Debt (₹ 14,208.7) (₹ 14,208.7) (₹ 14,208.7)
Implied Market Value ₹ 78,546.0 ₹ 84,544.2 ₹ 1,02,159.5
Shares Outstanding 20.17 20.17 20.17
Implied Value per Share ₹ 3,894.2 ₹ 4,191.6 ₹ 5,064.9
OverValued Undervalued Undervalued
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

Football Field Analysis

Football Field Analysis - Valuation Summary (Rs)

₹ 6,000

₹ 5,064.9
₹ 5,000
₹ 4,250.0

₹ 4,000
₹ 3,894.2
₹ 3,000

₹ 2,000
₹ 1,192.6 ₹ 1,284.5 ₹ 1,300.8

₹ 1,000 ₹ 1,257.9 ₹ 1,271.0

₹ 1,181.0 ₹ 1,176.0

₹0
Comps DCF Bear DCF Base DCF Bull 52W H/L
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

INR 3894.2
52 Week ( High - INR 4250 & Low - INR 1176 )

About the Company

Mazagon Dock Shipbuilders Limited is an India-based shipbuilding yard company. The Company is principally engaged in building and
repairing of ships, submarines, various types of vessels and related engineering products for its customers. It is also engaged in the
production of defense equipment. The Company is organized into two segments: Shipbuilding (New Construction and Ship Repairs)
and Submarine. Its Shipbuilding segment includes the building and repair of Naval ships. Its Submarine division includes building,
repair and refits of diesel and electric submarines for the Ministry of Defense (MoD) for use by the Indian Navy.

Financial Summary
Revenue(INR Cr.) Net Profit (INR Cr.) Avg. Total Assets (INR Cr.)
9,467
29,624 29,462
7,827 1,937 27,457
23,042
5,733
1,119
4,048

611
514

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Return on Equity Return on Assets Financial Leverage

6.57% 7.53x
35.21% 7.10x 6.88x

25.97% 5.36x
3.78%

15.83% 16.76%
2.23% 2.22%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Results Summary

 Mazagon Dock Shipbuilders Limited (MDL) is India's only shipyard building destroyers and conventional submarines for the Navy.
 Reported strong financial performance for FY 2023-24 with a revenue of ₹9,467 crores and PAT of ₹1,845 crores.
 Delivered 5 Kalvari Class Submarines between 2017-2022.
 Executed 3 of 4 Project P15B destroyers and launched the 4th Project 17A Stealth Frigate.
 Delivered 802 vessels since 1960.
 Recent achievements include commissioning INS Imphal and signing contracts for new offshore and fast patrol vessels.
 Emphasizes indigenization in shipbuilding projects.
 Maintains zero debt and has a consistent dividend policy.
 Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit ₹ 496.2 ₹ 532.5 ₹ 470.5 ₹ 513.9 ₹ 610.8 ₹ 1,119.0 ₹ 1,937.0
Average Shareholder Equity ₹ 2,906.5 ₹ 3,025.5 ₹ 3,138.2 ₹ 3,245.5 ₹ 3,644.7 ₹ 4,308.9 ₹ 5,501.8
Return on Equity 17.07% 17.60% 14.99% 15.83% 16.76% 25.97% 35.21%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit ₹ 496.2 ₹ 532.5 ₹ 470.5 ₹ 513.9 ₹ 610.8 ₹ 1,119.0 ₹ 1,937.0
Revenue ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6
Net Profit Margin (A) 11.13% 11.54% 9.59% 12.69% 10.65% 14.30% 20.46%

Revenue ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6

Average Total Asset ₹ 19,359.4 ₹ 20,112.0 ₹ 20,896.4 ₹ 23,041.6 ₹ 27,456.6 ₹ 29,624.3 ₹ 29,462.2
Asset Turnover Ratio (B) 0.23x 0.23x 0.23x 0.18x 0.21x 0.26x 0.32x

Average Total Asset ₹ 19,359.4 ₹ 20,112.0 ₹ 20,896.4 ₹ 23,041.6 ₹ 27,456.6 ₹ 29,624.3 ₹ 29,462.2
Average Shareholder Equity ₹ 2,906.5 ₹ 3,025.5 ₹ 3,138.2 ₹ 3,245.5 ₹ 3,644.7 ₹ 4,308.9 ₹ 5,501.8
Equity Multiplier (C) 6.66x 6.65x 6.66x 7.10x 7.53x 6.88x 5.36x

Return on Equity (A*B*C) 17.07% 17.60% 14.99% 15.83% 16.76% 25.97% 35.21%
Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE

Return on Asset
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit ₹ 496.2 ₹ 532.5 ₹ 470.5 ₹ 513.9 ₹ 610.8 ₹ 1,119.0 ₹ 1,937.0
Average Total Asset ₹ 19,359.4 ₹ 20,112.0 ₹ 20,896.4 ₹ 23,041.6 ₹ 27,456.6 ₹ 29,624.3 ₹ 29,462.2
Return on Asset 2.56% 2.65% 2.25% 2.23% 2.22% 3.78% 6.57%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit ₹ 496.2 ₹ 532.5 ₹ 470.5 ₹ 513.9 ₹ 610.8 ₹ 1,119.0 ₹ 1,937.0
Revenue ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6
Net Profit Margin (A) 11.13% 11.54% 9.59% 12.69% 10.65% 14.30% 20.46%

Revenue ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6

Average Total Asset ₹ 19,359.4 ₹ 20,112.0 ₹ 20,896.4 ₹ 23,041.6 ₹ 27,456.6 ₹ 29,624.3 ₹ 29,462.2
Asset Turnover Ratio (B) 0.23x 0.23x 0.23x 0.18x 0.21x 0.26x 0.32x

Return on Asset (A*B) 2.56% 2.65% 2.25% 2.23% 2.22% 3.78% 6.57%
Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE

Dupont Summary
 Return on Equity: Increased from 17.07% in 2018 to 35.21% by 2024.
 Net Profit Margin: Improved from 11.13% in 2018 to 20.46% by 2024.
 Asset Turnover Ratio: Started at 0.23x in 2018, increased to 0.32x by 2024.
 Equity Multiplier: Began at 6.66x in 2018, decreased to 5.36x by 2024.
 Return on Assets: Grew from 2.56% in 2018 to 6.57% by 2024.

Disclaimer: This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any
losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

Altman's Z Score Analaysis

Working Capital/Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital (₹ 5,577.0) (₹ 5,583.0) (₹ 4,139.0) (₹ 5,972.0) (₹ 9,206.0) (₹ 10,196.0) (₹ 9,553.0)
Total Assets ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8
Working Capital/Total Assets (A) -28.79% -26.78% -19.76% -23.75% -30.92% -34.59% -32.44%

Retained Earnings/Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings ₹ 148.2 ₹ 370.4 ₹ 159.9 ₹ 307.5 ₹ 387.0 ₹ 724.2 ₹ 1,499.5
Total Assets ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8
Retained Earnings/Total Assets (B) 0.76% 1.78% 0.76% 1.22% 1.30% 2.46% 5.09%

EBIT/Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
EBIT ₹ 670.1 ₹ 813.7 ₹ 739.9 ₹ 614.6 ₹ 763.0 ₹ 1,411.9 ₹ 2,430.0
Total Assets ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8
EBIT/Total Assets(C) 3.46% 3.90% 3.53% 2.44% 2.56% 4.79% 8.25%

Market Cap/Long Term Liabilites

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Market Cap - - - ₹ 4,281.9 ₹ 4,834.5 ₹ 13,373.1 ₹ 37,597.0
Long Term Liabilites - - - ₹ 29.7 ₹ 11.6 ₹ 6.0 ₹ 0.9
Market Cap/Long Term Liabilites (D) 0.00% 0.00% 0.00% 14436.54% 41533.59% 221408.20% 4042691.71%

Sales/Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales ₹ 4,457.2 ₹ 4,614.0 ₹ 4,904.8 ₹ 4,047.8 ₹ 5,733.3 ₹ 7,827.2 ₹ 9,466.6
Total Assets ₹ 19,373.8 ₹ 20,850.1 ₹ 20,942.8 ₹ 25,140.4 ₹ 29,772.8 ₹ 29,475.7 ₹ 29,448.8
Sales/Total Assets (E) 23.01% 22.13% 23.42% 16.10% 19.26% 26.55% 32.15%

Altman's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score -0.20 -0.14 -0.09 144.19 415.08 2213.89 40426.92
Financial Stability Distressed Distressed Distressed Strong Strong Strong Strong

Disclaimer: This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses
due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments
MAZAGON DOCK SHIPBUILDERS LTD
( NSE: MAZDOCK | BSE: 543237 )

Forensic Analysis
Particulars 2019A 2020A 2021A 2022A 2023A 2024A Trend Remarks
CFO/PAT 12.3% -20.3% 13.3% -26.6% 76.6% 35.3% Should be above at least 60%
Cumulative PAT/CFO 27.3% Should be above at least 60%
Depreciation rates 22.6% 6.9% -13.2% 24.9% 1.4% 10.0% Should be low in fluctuations
Depreciation as a % of revenues 1.4% 1.4% 1.5% 1.3% 1.0% 0.9% Should not fluctuate too much
CWIP as a % of Net Block 11.0% 9.6% 9.9% 9.0% 6.0% 8.1% Should not be too high
Increase in Sales 3.5% 6.3% -17.5% 41.6% 36.5% 20.9% Should increase Y-O-Y
Increase in Receivables 32.3% -2.7% -32.6% 4.1% -0.3% 84.3% Should be lower than sales growth
FCF Generation ₹ 455.9 ₹ 1,920.6 (₹ 1,385.1) (₹ 2,658.4) (₹ 66.1) ₹ 2,101.1 Should be positive
Pledging by Promoters 1% 1% 1% 1% 1% 0% Should be low & close to zero

Comments
 CFO/PAT Ratio: The CFO/PAT ratio, which measures cash flow from operations divided by accounting profit after tax, shows significant variability over the years. It spiked to very high
levels in 2023 but fell below the desired threshold of 60% in 2019, 2020, 2021, and 2022. It recovered somewhat in 2024 but remains an area needing attention for converting profits
effectively into cash.

 Cumulative PAT/CFO Ratio: The Cumulative PAT/CFO ratio, reflecting the cumulative accounting profit after tax compared to cumulative cash flow from operations, was significantly
below the expected benchmark of 60% in 2024, indicating ongoing challenges in translating profits into cash flows effectively.

 Depreciation Rates: Depreciation rates have shown fluctuations, ranging from -13.2% to 24.9%. This variability suggests potential inconsistencies in asset management and valuation
methods, highlighting the need for more stable depreciation practices to ensure accurate financial reporting.

 Depreciation as a % of Revenues: Depreciation as a percentage of revenues has remained relatively stable, fluctuating between 0.9% and 1.5%. Maintaining this consistency is crucial for
stable financial performance.

 CWIP as a % of Net Block: The percentage of capital work-in-progress (CWIP) relative to the net block of assets has varied, peaking at 11.0% in 2019 and falling to 6.0% in 2023 before
rising to 8.1% in 2024. This fluctuation suggests a need for vigilance to optimize capital utilization and project execution efficiency.

 Increase in Sales: Sales growth has varied annually, with fluctuations from -17.5% to 41.6%. While there has been positive growth in most years, sustained year-on-year improvement is
crucial for demonstrating robust business expansion.
 Increase in Receivables: The increase in receivables has shown significant variability, with notable decreases in 2020 and 2021 but a substantial increase of 84.3% in 2024, suggesting a
need for careful examination to maintain healthy cash flow dynamics.

 Free Cash Flow (FCF) Generation: Free Cash Flow (FCF) has shown positive trends overall, with significant deficits in 2021 and 2022 but substantial positive values in 2023 and 2024.
This highlights the company's ability to fund operations and growth initiatives, though attention is needed to ensure consistent positive cash flow.

 Pledging by Promoters: Pledging by promoters remained minimal at 1% from 2019 to 2022 and dropped to 0% in 2024, reflecting strong confidence in the company's financial stability
and reducing risk for investors.