Mazagon Dock shares plunged nearly 9% during intraday trade on Tuesday, continuing a sharp decline in recent sessions.
By 1:15 p.m., the stock was down 8.46% at Rs 4,325 on the Bombay Stock Exchange (BSE), having dropped over 12% since August 16.
Concerns over its high valuation have led to a sell-off, with the multibagger stock losing ground after hitting a recent high of Rs 4,976.40. Mazagon Dock’s market capitalisation now stands at Rs 87,150 crore.
Mazagon Dock is trading below its 5-day to 50-day moving averages but remains above its 100-day, 150-day, and 200-day averages. Despite its multibagger status, analysts have turned bearish on the stock.
Nirmal Bang Institutional Equities has issued a ‘Sell’ recommendation, pointing to excessive valuations. The stock is trading at 30.4 times the estimated FY26 earnings per share, well above its three-year average PE of 11.1 times.
The brokerage has set a target price of Rs 4,468.
Riyank Arora, Technical Analyst at Mehta Equities, echoed this sentiment, suggesting a ‘sell on rise’ strategy. He noted that the stock shows a bearish outlook, with immediate support at Rs 4,540 and resistance at Rs 5,155.
Arora advised traders to exit positions near the Rs 5,100-5,200 resistance levels and consider re-entering around Rs 4,500, where strong support is expected. Monitoring price action and volume is key to confirming these levels.
ICICI Securities also sees Mazagon Dock as overvalued at current levels, citing risks related to order execution timelines. The brokerage has maintained a ‘Sell’ rating, despite revising its price target to Rs 1,165 from an earlier Rs 900, following improved earnings estimates.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)