Shares of Mazagon Dock Shipbuilders Ltd (MDL) are set for an upside of 15% post strong Q4 earnings show. The multibagger stock clocked 576% returns in three years and 2412% returns in five years. But the rally is not likely to fizzle out soon. According to HDFC Securities, Mazagon Dock shares are set to hit the Rs 3,000 mark in a year. That's a 15% upside to the current market price. 

In the current session, the stock was trading on a flat note at Rs 2633.70. Mazagon Dock's market cap stood at Rs 1.06 lakh crore. Total 0.97 lakh shares of the firm changed hands amounting to a turnover of Rs 25.39 crore. 

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 55.3, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but lower than the 5 day and 10 day moving averages.

Mazagon Dock reported a 42% year-on-year (YoY) rise in Q4 net profit led by higher execution across shipbuilding and submarine programmes. 

The state-run defence firm reported a standalone net profit of Rs 464 crore for the quarter ended March 2026 compared with Rs 327 crore in the same period last year.

EBITDA margin for the quarter rose sharply to 13.6% due to P17A delivery. "We expect MDL to continue this robust performance over the next few years due to its robust order pipeline consisting of  submarines, frigates, and destroyers. The expectation of the order value of 6 next-gen submarines of Rs 99,000 crore over an earlier estimate of Rs 77,000 crore makes us increase our estimates for FY27E and FY28E," said the firm.  

The brokerage expects the revenue to start kicking in from FY28 for these platforms. The defence major has also bought a 51% stake in Colombo Dockyard PLC, which will help the company build an MRO orderbook diversifying its revenue streams and reducing revenue  cyclicality. 

"With this multi-year revenue visibility, we continue with an ADD rating for a target price of Rs 3,000 (40x FY28E EPS)," said HDFC Securities.