The stock value of Cochin Shipyard increased by 298% in a year, closing at ₹901.65 on the BSE. Citing superior shipbuilding and repair capabilities, order backlog, and growth potential, ICICI Direct Research rates it as a “buy” with a target price of ₹1,055.
The stock value of Cochin Shipyard has increased dramatically in only a single year. According to Trendlyne data, Cochin Shipyard’s share price soared by about 298% in a single year from its previous trading price of ₹902.45.
The main activities of Cochin Shipyard include the construction of new ships as well as their maintenance and refurbishment. The closing price of Cochin Shipyard shares on the BSE on Friday was ₹901.65, up 0.59% from the previous session.
The share price of Cochin Shipyard has increased by 39% over the last three months and by over 80% over the last six months.
Domestic brokerage ICICI Direct Research has a “buy” rating on Cochin Shipyard shares, with a target price of ₹1,055. Two factors support the brokerage’s investment case: the company’s exceptional capabilities in shipbuilding and ship repair; the potential to successfully take on a substantial order backlog to drive expansion; and the longevity of the order inflow opportunity.
Values are appealing in light of the many development drivers. The brokerage stated, “We value Cochin Shipyard at ₹1,055, or 36x FY26E P/E.
Contracts valued at ₹84,000 crore, according to the management, are currently in the request for proposals (RFP) phase. The firm believes that Cochin Shipyard has a bright future in the defence sector with the India Navy’s planned vessel procurement.
“Over FY24–26E, we expect that Cochin Shipyard will see notable YoY growth in revenues and profitability, driven by a pick-up in execution in both categories and an increase in the share of the margin-accretive ship-repair segment. In contrast to the de-growth seen over FY20–23, we project revenue and profit after tax (PAT) to expand at around 23% and roughly 36% CAGR, respectively, over FY23–26E.”
ICICI Direct Research report
