The BSE smallcap index has officially entered the correction mode, falling into a bear market which is defined as down more than 20% from its recent peak.
However, one must remember that market corrections or minor pullbacks like this are part and parcel of the journey – what Warren Buffett calls a norm, and not a calamity.
In the past 2 decades, the Indian benchmark index has averaged a correction every 12 months, and most of them didn’t turn into prolonged bear markets.
Is this just a reset or the start of something worse? Nobody knows…
While most investors try to predict what’s coming next, Mazagon Dock Shipbuilders is charting its own course.
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This quarter, the company posted record-breaking earnings and it’s expecting the order book to accelerate in the coming months.
Even in this correction, the stock has fallen less and covered up a lot of the lost ground.
Mazagon Dock share price performance – 6 Months
Source: Equitymaster
Of the six government-owned shipyards (Mazagon Dock, Cochin Shipyard, Garden Reach Shipbuilders, Goa Shipyard, Hindustan Shipyard and Hooghly Cochin Shipyard), Mazagon Dock is the only one to be entrusted to build and repair warships (frigates and destroyers) and submarines.
With government taking serious steps to reboot the industry by launching the Shipbuilding Financial Assistance Policy, the current naval fleet can last until late 2030s.
As India’s largest warship builder, Mazagon Dock has a massive order book.
Lets take a look at Mazagon Dock’s long-term prospects and how investors can think about navigating the defence shipbuilding sector with this state-owned PSU.
India’s Top Submarine Stock with a ‘Monopoly’ Status
With critical projects like Project 17A frigates, Kalvari-class submarines and Project-15 Bravo destroyers, Mazagon Dock is a monopoly player.
The company initially received a shot in the arm thanks to the Union Budget 2025. The government rolled out the Shipbuilding Financial Assistance Policy, offering tax relief and financial incentives to ramp up domestic manufacturing.
Key takeaways include a basic customs duty exemption on shipbuilding and shipbreaking companies for 10 years,
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