Mazagon Dock Shipbuilders shares surge over 15%, hit record high. Check details

Mazagon Dock Shipbuilders Limited shares surged over 15 per cent on Friday to hit a record high in early trade. The company's shares rose 15.18 percent to reach Rs 2,404.80 per share on the National Stock Exchange (NSE) at approximately 10:20 am.

Shares of Mazagon Dock Shipbuilders saw an increase following the company's announcement of the formalization of a Master Ship Repair Agreement (MSRA) with the US government, represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka.

“This is to inform that MDL has signed Master Ship Repair Agreement (MSRA) with the US Government represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. This is a Non-Financial Agreement," the company said in a stock exchange filing.

"There are only two shipyards in the country including MDL who have signed MSRA. The agreement is expected to open-up voyage repairs of US Navy Ships at MDL,” it added.

This non-financial accord carries considerable strategic importance and positions MDL as one of just two shipyards in the nation to have engaged in such an agreement.

It may be noted that shares of the shipyard, situated in Mazagaon in Mumbai, have seen stellar gains over the past 5 trading sessions, rising over 25 per cent. In 6 months, the stock has soared 220 per cent and a whopping 448 per cent in a year.

Not just Mazagon Dock Shipbuilders, but shares of Cochin Shipyard also surged in early trade on Friday after its management said that the company is poised to register stronger growth in FY24.