defense
Mazagon Dock Shipbuilders
MAZDOCK · Nifty 50
₹2,552.4
Price 2026-06-17
At a Glance
Fundamental
65/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Mazagon Dock Shipbuilders scores 65/100 on fundamentals (adequate). Mazagon Dock Shipbuilders: BROAD EXPANSION regime.
Fundamental Score: 65/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 23.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 23.95% is strong margin-driven and stable. Net margin of 17.6% × asset turnover of 0.48x × leverage of 2.8x.
What This Means
Net margin of 17.6% means the company keeps ₹17.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.48x means the company generates ₹0.48 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.8x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
36.5%
Operating
21.7%
Net
17.6%
Gross margin 36.5% → operating margin 21.7% → net margin 17.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers -1.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 116.0x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin negative at -23.1% — spending more than earning. Check capex cycle.
Peer Comparison
Mazagon Dock Shipbuilders is compared against 7 peers in the defense sector.
Key Watchpoints
Breaks above ₹2680 (+5%)
Trend reversal confirmation
Breaks below ₹2425 (-5%)
Further downside risk
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only -1.2x net income. Profit not converting to cash — aggressive accounting possible.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes