Indian shipbuilding majors Mazagon Dock Shipbuilders and Cochin Shipyard faced significant investor backlash after reporting a weak set of earnings for the September 2026 quarter. Both companies saw their stock prices plunge following the announcements, prompting various brokerage firms to revise their price targets and ratings.
Mazagon Dock Shipbuilders Faces Sharp Decline
Mazagon Dock Shipbuilders declared its Q2 earnings on October 27, revealing a substantial downturn. The company's net profit plummeted over 54% year-on-year and 37% quarter-on-quarter to Rs 344 crore. This marks the sharpest year-on-year decline since Q4 FY 2024-25.
Revenue from operations also fell significantly, dropping over 16% year-on-year and nearly 17% quarter-on-quarter to Rs 2,446 crore. This revenue decline broke a streak of 12 consecutive quarters of growth. Following these results, Mazagon Dock's stock slumped 10% on an intraday basis, closing 1% lower at Rs 1,890 in the subsequent session, reducing its market capitalization to Rs 76,238 crore.
Brokerage firm SMIFS remains bullish on Mazagon Dock, setting a target price of Rs 2,905, citing its specialized capabilities and execution record. However, Ashika Stock Broking and Anand Rathi maintained 'hold' calls with targets of Rs 1,982 and Rs 1,956 respectively. In contrast, Kotak Securities issued a 'sell' call with a target of Rs 1,660.
Cochin Shipyard Reports Steep Profit Drop
Cochin Shipyard announced its Q2 earnings on November 10, also reporting a disappointing performance. The company's consolidated net profit fell 50% year-on-year to Rs 54 crore, compared to Rs 108 crore in the same period last year. Sequentially, net profit declined by more than 64% from the June quarter.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 30.7% year-on-year to Rs 51 crore, and the EBITDA margin shrank to 4.1% from 6.6% a year ago. Despite the profit decline, revenue from operations saw a nearly 12% rise to Rs 1,249 crore in Q2.
The weak results led to an 8% tanking of Cochin Shipyard's stock on November 11, closing at Rs 1,178.50 in the current session, with its market cap falling to Rs 31,004 crore.
Choice Broking assigned a 'buy' call with a target price of Rs 1,565, citing strong medium-term growth prospects and attractive valuations post-correction. Conversely, Kotak Securities issued a 'sell' call with a target of Rs 800, while Antique Broking also recommended 'sell' with a revised target of Rs 1,407 due to weak execution and elevated valuations. ICICIDirect maintained a 'hold' rating with a target of Rs 1,590.