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News: Mazagon Dock Shipbuilders (MDL) has signed a contract with the Ministry of Defence (MoD) for construction of the first Indian Coast Guard training ship at a cost of Rs 310 crore. It would be the first dedicated training platform with integral helicopter capabilities that will provide basic sea training to Coast Guard personnel and other international trainee officers.
Views: Indian Coast Guard future procurement plan includes patrol vessels and training vessels, which presents a sizable opportunity for Indian shipyards like MDL. With this contract, MDL's order backlog is estimated to be at ~Rs 38000 crore (~5x TTM revenues) which provides strong growth visibility in the coming period.
Impact: Positive