Mazagon Dock Shipbuilders Ltd clarified on Monday that no negotiations are currently underway with the Defence Ministry regarding the ₹70,000-crore Project 75 India submarine contract.
Background of the Deal
On Sunday, reports suggested the Centre had cleared negotiations between the Defence Ministry and Mazagon Dock for six submarines to be built in partnership with Germany’s ThyssenKrupp Marine Systems (TKMS). The shipbuilder, however, stated in its exchange filing: “No negotiations have been commenced with the Ministry of Defence for the project.”
Selection and Partnerships
The Defence Ministry had earlier shortlisted Mazagon Dock in January to build six submarines with Air Independent Propulsion systems. TKMS was chosen as the technology partner, responsible for design and engineering, while Mazagon Dock would handle construction and delivery.
Both firms signed an MoU in June 2023 to formalize the partnership.
Capacity Expansion at Mazagon Dock
In its May earnings call, Mazagon Dock said it expects contracts for additional Project 75 and new Project 75(I) submarines to be finalized within this financial year.
Chairman and MD Capt. (Retd.) Jagmohan revealed the company has scaled up facilities to build 11 submarines, citing the creation of a Submarine Section Assembly (SSA) workshop.
Market and Stock Performance
The clarification was issued after market hours. Earlier, Mazagon Dock’s stock closed 2.05% higher at ₹2,755.70 on the NSE, outperforming the Nifty 50’s 0.39% gain.
Shares have gained nearly 25% in the past year and 23.7% year-to-date. Analyst sentiment remains mixed: four rate it a ‘buy’, three ‘hold’, and two ‘sell’. Bloomberg data shows a consensus 12-month target of ₹3,232.5, implying a 17% upside.
