Defense stock, Mazagon Dock Shipbuilders shares fell by 3.5%, ahead of stock split record date

Defense and Shipbuilder PSU stock, Mazagon Dock Shipbuilders, faced a decline of 3.36% in its stock price on December 18, 2024. The stock underperformed the sector by 1.69%, marking a trend reversal after two consecutive days of gains. During the trading session, the stock reached an intraday low of Rs 5122.7, reflecting a decrease of 3.48%.

The company's shares were trading with gains of 5% in an otherwise weak market on Tuesday, December 17. This was 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 Rs 3,851 on November 14 before recovering from those levels. The stock's Relative Strength Index (RSI) is now at 76.

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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 Rs 10 into two shares of Rs 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 Rs 5,860, which it had hit in August, before this correction spree over the next three months.

Mazagon Dock does not have a 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 at 3.3% lower at Rs 5,122.7. The stock is now up 131% so far in 2024.

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