Multibagger defence stock rises 4% in early deals, here's why

Shares of Mazagon Dock Shipbuilders rose nearly 4% in early deals on Monday amid a report, which said the Ministry of Defence has allowed the defence firm to start cost negotiations with Germany’s Thyssenkrupp Marine Ltd. for building six submarines, under the P-75(I) project.

Mazagon Dock shares rose 3.61% or Rs 97.5 to Rs 2798.15 in the current session amid a rally in Sensex and Nifty. 

A total of 0.71 lakh shares of the firm changed hands amounting to a turnover of Rs 19.73 crore. Market cap of the firm climbed to Rs 1.12 lakh crore. 

The multibagger defence stock has gained 23% in 2025 and risen 1657% in three years. 

According to a CNBC TV 18 report, negotiations for the Rs 70,000 crore project are likely to start soon. The project will be awarded to Mazagon Dock and Thyssenkrupp, six months after successful completion of the cost negotiations.

Mazagon Dock and Thyssenkrupp inked a Memorandum of Understanding (MoU) in June 2023 for the construction and delivery of six submarines for the Indian Navy. Under the MoU, Thyssenkrupp was would handle the engineering and design, while Mazagon Dock will be responsible for the construction and delivery of those six submarines.

Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.