Mazagon Dock Shares Under Pressure After JPMorgan Warning

Shares of Mazagon Dock Shipbuilders fell during Friday’s trade after global brokerage firm JPMorgan issued a cautious note, maintaining its underweight rating on the stock. Despite the company’s share price already correcting nearly 27% from recent highs, JPMorgan believes the risk-reward ratio remains adverse.

The brokerage has set a target price of ₹2,468, implying a potential 11% downside from Thursday’s closing levels. The stock slipped further in today’s session, trading 1.4% lower at ₹2,730.

Concerns Over Weak Quarters and Delayed Orders

According to JPMorgan, Mazagon Dock’s recent performance has been weak, with the fourth quarter of last year and the first quarter of this year impacted by provisioning-related cost overruns.

Adding to concerns, the large order for three P-75 Scorpene submarines has been delayed, creating uncertainty over the company’s revenue projections. Any further delay could impact FY28 revenue estimates, as such projects usually take two years to start contributing significantly.

The brokerage also noted a lack of incremental triggers, pointing out that the six additional P-75I submarine orders show little positive momentum.

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Market Insights & Analyst Views

Currently, six analysts cover Mazagon Dock—four with a buy rating and two with a sell call. JPMorgan’s price target is among the lowest, second only to Asian Market Securities’ target of ₹2,100.

For now, the stock faces limited upside catalysts, while market sentiment remains cautious on defence PSUs. Investors are closely tracking updates on the delayed submarine orders, which could be a key trigger for the stock’s future performance.

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