Shares of Mazagon Dock Shipbuilders Ltd. slipped 2% on Wednesday, October 28, after HSBC reiterated a 'Reduce' rating and slashed its price target to ₹1,680.
According to the 30‑day filing, September‑quarter revenue fell 16% YoY, leaving the company behind the flat‑growth consensus that hovered around ₹X crore. EBITDA margin contracted to 8%, a steep deviation from the 16% estimate.
Per the filing, net profit collapsed 54% to ₹346 crore, compared with the ₹575 crore estimate. A ₹445 crore provision weighed heavily, whereas the prior year reversal was ₹25 crore and analysts had anticipated ₹30 crore.
HSBC's analysis notes the P75 submarine programme as a potential catalyst, but expects its revenue impact to materialise over 2‑3 years. The brokerage cautions that earnings will likely stay weak through FY27‑FY29.
With the revised target, the stock sits 4% below its 12‑month high. Traders will watch the upcoming FY28 guidance and any new orders that could tilt sentiment.