Mazagon Dock Shipbuilders — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Defence & aerospace industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Defence & aerospace · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Mazagon Dock Shipbuilders MAZDOCK · you	₹84,655 Cr	32.1×	8.5×	37.4×	26.5%	19.9%	18.4%
Sector median	—	51.2×	10.0×	38.2×	18.9%	19.6%	21.4%
Hindustan Aeronautics HAL	₹3.3 L Cr	32.3×	7.2×	28.4×	22.2%	27.5%	7.1%
Bharat Electronics BEL	₹3.0 L Cr	49.5×	12.5×	37.4×	25.3%	22.0%	15.9%
Bharat Dynamics BDL	₹44,070 Cr	103.5×	10.3×	197.3×	9.9%	17.2%	-0.6%
Cochin Shipyard COCHINSHIP	₹37,893 Cr	52.9×	6.5×	46.7×	12.2%	14.3%	28.5%
Garden Reach Shipbuilders & Engineers GRSE	₹30,354 Cr	40.6×	11.6×	38.2×	28.5%	10.7%	39.8%
Data Patterns India DATAPATTNS	₹25,473 Cr	85.4×	13.4×	68.7×	15.6%	29.3%	26.8%
HBL Engineering HBLENGINE	₹21,182 Cr	26.6×	9.8×	19.6×	36.8%	24.7%	34.1%
BEML BEML	₹14,792 Cr	104.6×	5.0×	49.5×	4.8%	3.2%	3.7%

Peer comparison verdict

Mazagon looks attractively valued — trading at a discount to sector peers on P/E (32.1× vs sector median 51.2×) while delivering above-average returns on equity (26.5% vs 18.9%).

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

35% weight · 8 peers

Sector median PE51.2×

Fair value via PE₹3,328

25% weight · 8 peers

Sector median PB10.0×

Fair value via PB₹2,460

EV/EBITDA

40% weight · 7 peers

Sector median EV/EBITDA38.2×

Fair value via EV/EBITDA₹2,130

Blended peer fair value₹2,632

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.