Mazagon Dock Shipbuilders shares recover 36% from November lows ahead of stock split record date – CNBC TV18

Shares of Mazagon Dock Shipbuilders Ltd. are trading with gains of 5% in an otherwise weak market on Tuesday, December 17. This is the second day of gains for the stock, after the 4% surge it witnessed during Monday’s trading session as well.

With this move, the stock has now recovered 36% from the lows of November. The stock had made a low of ₹3,851 on November 14 before recovering from those levels.

On the charts, the stock is now in Overbought territory. The Relative Stregnth Index (RSI) of the stock is now at 76. An RSI reading above 70 means that the stock is “overbought”.  The stock crossed its 100-Day Moving Average (DMA) towards the end of November and has continued to move higher since then.

The stock is also witnessing buying interest ahead of its record date for its stock split. December 27, 2024 has been fixed as the record date for Mazagon Dock’s stock split.

The state-run shipbuilder will split one share of ₹10 into two shares of ₹5 each.

This means that shareholders who have shares of Mazagon Dock Shipbuilders in their demat account before December 27, 2024 will be eligible for the share split.

With this recovery, the stock is now just 10% away from its record high of ₹5,860, which it had hit in the month of August, before this correction spree over the next three months.

Mazagon Dock does not have significant free float in the market as 84% stake is still owned by the government at the end of the September quarter.

Shares of Mazagon Dock Shipbuilders are trading 4.9% higher at ₹5,280. The stock is now up 131% so far in 2024.