Mazagon Dock shares slip 8% from record high: What investors should watch post Q4 results

Shares of Mazagon Dock Shipbuilders Ltd corrected on Friday the state-owned defence player posted a 51 per cent year-on-year (YoY) decline in its fourth quarter (Q4 FY25) profit, which came at Rs 325 crore compared to Rs 663 crore posted in the year-ago period.

The stock slumped 7.18 per cent to settle at Rs 3,480.10. At this closing level, it has declined 7.89 per cent from its all-time high of Rs 3,778, seen in the previous trading session. Despite this mentioned drop, it has climbed 13.80 per cent in a month.

The Mumbai-based company's revenue from operations, however, rose 2.3 per cent YoY to Rs 3,174.4 crore in Q4 FY25 from Rs 3,103.7 crore in the corresponding period last fiscal. But operating performance was weak as EBITDA (Earnings before interest, taxes, depreciation and amortisation) plunged 83 per cent to Rs 90 crore YoY.

Mayuresh Joshi, Head of Equity Research at William O'Neil India, expects tailwinds to continue for the defence player while noting that execution of orders will be a key aspect to monitor. "Timelines are going to be extremely critical for this line of business," Joshi told Business Today, stressing that Mazagon's valuations are through the roof at present.

Technically, the scrip traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 60.17. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, suggested that the possibility of cool-off was higher after the recent rally. "Mazagon has support around Rs 3,300, followed by Rs 3,280 and Rs 3,000 levels. On the higher end, a breakthrough above Rs 3,600-3,680 could only trigger fresh momentum in the coming period," he stated.

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said immediate support would be at Rs 3,400 and resistance at Rs 3,600. "A decisive move above Rs 3,600 level may trigger a further upside towards Rs 3,720. The expected trading range will be between Rs 3,350  and Rs 3,720 for the short term," he also said.

Sebi-registered independent research analyst AR Ramachandran mentioned that the stock has strong resistance at Rs 3,775 level. "A daily close below Rs 3426 could lead to a downward target of Rs 3,020 in the near term," he added.

Mazagon Dock Shipbuilders is among the leading shipbuilding yards in India. It offers services to the Indian Navy and Coast Guard. As of March 2025, the government held an 84.83 per cent stake in the defence PSU.