Mazagon Dock shares snap 6-day fall to rise up to 2%: Here’s why

New business data points to the fact that Mazagon Dock Shipbuilders shares rose nearly 2 percent in Friday's market session, snapping a six-session losing streak, after the firm's Director (Finance) Ruchir Agrawal stated the firm is looking at an investment of up to Rs 15,000 crore in a shipyard in Maharashtra.

Speaking to CNBC-TV18, Agrawal stated the firm is targeting 15-17 percent returns from the proposed investment and anticipates a binding agreement soon.

He additionally stated the P75I submarine order is anticipated in the current fiscal and that Mazagon Dock will bid for the Navy's 75 Bravo RFP. He further noted that the firm's order book would stay firm if the order comes through.

Shares of Mazagon Dock Shipbuilders quoted at Rs 2,251.90 per share on the NSE, up 1.9 percent.

The stock had declined for six consecutive sessions before Friday's upside.

Earlier the current week, the firm stated it had signed a memorandum of understanding (MoU) with National Shipbuilding & Heavy Industries Park Maharashtra Ltd (NSHIPML) to participate as the anchor shipyard in the proposed Greenfield Shipbuilding Industrial Cluster at Dighi in Maharashtra.

The proposed shipyard envisages an annual shipbuilding capacity of at least 1.2 million gross tonnes. It will enable the construction of large commercial vessels and help create a maritime industrial ecosystem comprising ancillary industries, MSMEs, technology partners and skilled employment.

The Dighi project marks MDL's expansion from its established strengths in warship and submarine construction into large-scale commercial shipbuilding and is part of India's maritime ambitions under Maritime Amrit Kaal Vision 2047.