Mazagon Dock Shipbuilders Limited Fair Value
MAZDOCK · Capital Goods · Current price ₹2,092
Is Mazagon Dock Shipbuilders Limited undervalued?
We estimate the fair value of Mazagon Dock Shipbuilders Limited at ₹2,680 per share, against a market price of ₹2,339. That puts the share price about +14.6% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹2,680). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Mazagon Dock Shipbuilders Limited spans ₹2,412 to ₹2,948. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for Mazagon Dock Shipbuilders Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹2,412 – ₹2,948
Why this method for this business
The relative P/E and EV/EBITDA models are most appropriate for a capital-intensive shipbuilder with durable order books and stable cash flows. These models capture the value of long-term contracts and the firm's ability to generate consistent returns.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf: Not suitable for a capital-intensive business with high upfront costs and long project timelines
- ev_ebitda: Used but with lower weight due to limited historical EBITDA data
What was missing
- Limited historical EBITDA data for EV/EBITDA model
- No forward EPS data for DCF model
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 25.1×
- Peers used
- 416
- EPS (TTM)
- 70.85 ₹/share
- Own-history median P/E
- 15.37×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- +4.4%
- Term: growth
- +40.0%
- Term: capital_allocation
- +8.2%
- Term: financial_strength
- +6.6%
- Term: history
- -11.6%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 64/100 (high, stable returns) → premium
durable ~32% CAGR (ROCE 30% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid -39% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +50.7%
- Fair-multiple confidence
- 81%
- Fair P/E
- 37.82×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Mazagon Dock Shipbuilders Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Mazagon Dock Shipbuilders Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.