Mazagon Dock Gains On ₹70,000 Cr. Submarine Talks; SEBI Analyst Flags Bounce Plays

The stock is retesting resistance after recent gains, with the analyst pointing to ₹2,600 as a key downside level and ₹3,300 as the breakout trigger for a sustained uptrend.

Mazagon Dock Shipbuilders’ shares gained nearly 2% Monday after the Ministry of Defence reportedly approved cost negotiations with Germany’s Thyssenkrupp Marine for six submarines under the Project 75I program. 

Negotiations are apparently expected to conclude within six months, following which the contract will be awarded, CNBC-TV18 reported.

The two firms had already signed an MoU in June 2023, assigning design to Thyssenkrupp and construction to Mazagon Dock.

Analysts Highlight Tactical Setup, But Risks Remain

SEBI-registered analyst Front Wave Research said Mazagon Dock continues to draw support from its 200-day exponential moving average (EMA), which has historically underpinned the stock’s long-term bull run. 

The firm said prices are retesting resistance, creating room for short-term bounce trades, but warned that a close below ₹2,600 would turn the long-term picture bearish. 

A move above ₹3,300 would be needed to confirm a renewed uptrend.

Broker Views And Near-Term Catalysts

JPMorgan reiterated its “underweight” stance last week, citing limited incremental newsflow on the submarine deal and setting a target of ₹2,468. 

It stated that the risk-reward ratio remains adverse despite a 30% correction from the recent peak of ₹3,775. Recent earnings were weighed by cost overrun provisions, though management expects margins to recover. 

Another near-term catalyst is the stock’s addition to the Nifty Next 50 index in September’s semi-annual reshuffle.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Mazagon was ‘bearish’ amid ‘normal’ message volume.

Mazagon’s stock has risen 22.7% so far in 2025.

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