Defence stocks: Double the money in 30 days.

 

 

5/7/2024,

Defence Stock: One PSU defence stock is Mazagon Dock Shipbuilders. In just one month, investors' money has more than doubled thanks to its shares. The IPO price of Rs 145 saw a 3,800% surge in the defence stock.

 

Defence Stock: There is a lot of activity in the shares of various defence corporations, including government-owned ones. Following the Modi government's recent push to increase domestic manufacture and export defensive products, a number of stocks have experienced significant price increases. Mazagon Dock Shipbuilders is one of the best-performing defence stocks that has given investors enormous returns. In fact, in only one month, investors' money has more than doubled thanks to the PSU defence stock.

 

The Ministry of Defence has administrative supervision over Mazagon Dock Shipbuilders, a shipbuilding enterprise.

 

 

At Mazagon Dock, Shipbuilders Split Profits

The shares of Mazagon Dock Shipbuilders reached the upper circuit on Thursday, July 4, after rising 10%. The counter crossed over to the Rs 5,500 mark for the first time. This also was the first occasion that the defence company's market valuation has surpassed the Rs 1 lakh crore threshold.

 

 The cause of the company's recent share price increase is the government's recognition of Mazagon Dock Shipbuilders as a Navratna firm.

Mazagon Dock Shipbuilders' IPO Specifications

The Mazagon Dock IPO got underway in September 2020. Rs. 135 to Rs. 145 was the price range for the IPO.

 

On October 12, 2020, Mazagon Dock's shares went public at Rs 216.25, resulting in a listing gain of about 50% over the upper bound of the IPO price.

 

Mazagon Dock shares stayed in a range following IPO. The first time it exceeded Rs 300 was in April 2022. Investors have gained riches as a result of the remarkable surge in the defence stock since then.

3800% REFUND

According to the computation using the Rs 145 IPO issue price, Mazagon Dock shares have increased by almost 3,800% as of July 4.

 

The initial investment of Rs 15,000 would have grown to more than Rs 5.50 lakh if the investor had received an allotment for the Mazagon Dock IPO and stayed put.

 

Mazagon Dock shares have produced a multibagger return of 109% over the past month and 155% over the past three months, according to BSE statistics.

 

In just one year, the stock of defence PSUs has surged by 336 percent.

 

According to Vivek Karwa, CEO of VRIDHI Investment, the defence sectors are getting increasing attention as a result of rising defence spending and geopolitical upheaval.

After the Budget, you can see profit booking in defence companies because "The Street is expecting significant announcements from the government in the Budget, so defence stocks are rallying despite the extremely high valuation and potential risk." But I'm afraid to buy at these costs (Darr Lagta Hai). Though buying the dip makes sense, I'm going to pass," he said.