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News: Mazagon Dock Shipbuilders (MDL) has signed individual shipbuilding contracts with the European client for construction of three units of 7,500 DWT Multi-Purpose Hybrid Powered Vessels for a value of $ 42 million (~Rs 350 crore). The three vessels are scheduled to be delivered between Oct 2026 to Feb 2027.
Views: MDL had already signed a Letter of Intent (LOI) with this European client for these vessels in Oct 2023. MDL have been exploring export opportunities in the defence or commercial shipbuilding segment and with this contract, we believe that more export opportunities would emerge for the company in future. Order backlog is estimated to be at ~Rs 35800 crore (3.8x FY24 revenues), provides healthy revenues visibility. Orders pipeline remains robust across defence and commercial ship-building segments.
Impact: Positive