Mazagon Dock Shipbuilders Ltd: Is It a Deep Value Opportunity?

Mazagon Dock Shipbuilders Ltd has a deep value score of 43/100 (rated Average). This score is calculated from three components

• Earnings Score: 9/40 — measures PAT growth momentum across quarters
• Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)

Mazagon Dock Shipbuilders Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): -24%
• Previous Quarter PAT Growth (QoQ): +18%
• 2 Quarters Ago PAT Growth (QoQ): +69%
• PAT Acceleration: -46.9pp (profits are decelerating)

Mazagon Dock Shipbuilders Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -25%
• 6-Month Return vs Nifty 500: -3%
• 3-Month Return vs Nifty 500: -7%
• Yet average quarterly PAT growth is +21% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Mazagon Dock Shipbuilders Ltd's earnings momentum is Decelerating — growth rate is slowing.

• PAT QoQ progression: +69% → +18% → -24% (2Q ago → 1Q ago → latest)
• Acceleration: -46.9pp
• PAT YoY Growth: +107%

Mazagon Dock Shipbuilders Ltd's valuation metrics

• Price-to-Earnings (PE): 35.3x
• Price-to-Book (PB): 10.0x
• PEG Ratio: 0.9x
• Margin of Safety: +18% (appears undervalued)

Mazagon Dock Shipbuilders Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +7%
• Average Quarterly Revenue Growth: +14%
• Revenue Acceleration: -2.3pp
• Latest OPM Change: -10.5pp (margins contracting)
• Average OPM Change: +0.9pp
• Revenue YoY: +21%

Mazagon Dock Shipbuilders Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹3,000 Cr
• TTM PAT Growth: +14.2% YoY
• TTM Revenue: ₹13,000 Cr
• TTM Revenue Growth: +13.8% YoY
• TTM Operating Margin: 18.7%

Mazagon Dock Shipbuilders Ltd key facts

• Sector: Ship - Docks/Breaking/Repairs
• Market Cap: ₹97.4K Cr
• Rank in Ship - Docks/Breaking/Repairs: #1 by value score
• Overall rank among all deep value stocks: #129

Mazagon Dock Shipbuilders Ltd shows limited deep value signals currently — score is 43/100 (Average). Monitor for improvement.

• Value Score: 43/100 (Average)
• Earnings: Not accelerating
• 1Y Underperformance: -25% vs Nifty 500

Ship - Docks/Breaking/Repairs deep value sector overview

• 1 deep value stock in this sector
• Average value score: 43/100
• Avg PAT acceleration: -46.9pp
• Top pick: Mazagon Dock Shipbuilders Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.