A mid-cap firm whose market valuation 4,793.33 crore is the Cochin Shipyard Limited that works in the industrial area. One of India’s top shipbuilding and repair facilities, Cochin Shipyard enjoys Miniratna status. The only shipyard and the largest public shipyard managed by the Ministry of Ports is Cochin Shipyard Limited. Shares of Cochin Shipyard Limited ended trading on NSE today 365.00 a piece, up 3.94% from the previous close 351.15. The stock is up 3.49% over the past year, and on a year-over-year basis, it has climbed 2.70% so far in 2022. Stock hit 52-week high on NSE 383.00 on 12 November 2021, and its 52-week low of . was 280.75 on March 8, 2022, indicating that it is now trading 4.69% down from the high and 30% low 365.00 Brokerage ICICI Securities is bullish on the stock and has set a buy limit 355-365, for a target price of It is also recommended to maintain 425.00 and stop loss 327.00. At the current market price, the stock is down 16% from its target price which will also be a new 52-week high for the stock.
Research analysts at broking firm ICICI Securities said, “The defense PSU remains resilient and has outperformed the broader market. Several defense sector stocks generated a breakout above their multi-year consolidation phase, which is a structural one. Indicates change. Within the defense sector we remain constructive at Cochin Shipyard, which we expect to outperform as it generated a breakout above a recently falling supply line that adds to a June 21 high. Is ( 433) and April 22 ( 357) and signaling similar to the up move is seen above the resume.”
He further added that “In the process the stock has also generated a breakout above the range of the last four months ( 357-297) highlights strength with strong volumes exceeding three times the 50 week average volume and offers new entry opportunities. We expect the stock to continue with its current up move and move ahead The 425 level is a 161.8% extension of the previous up move in the coming months ( 281–357) as launched from the June 22 trough 297. The weekly MACD is in an uptrend and is seen entering positive territory which indicates an acceleration of the uptrend.”
Commenting on the performance of Cochin Shipyard in Q1FY23, research analysts at broking firm ICICI Securities said, “During Q1FY23, CSL registered a year-on-year revenue growth of 33.8%. 440.9 crore; Shipbuilding segment (80% of revenue) grew at ~31% y-o-y and ship repair segment grew ~47% y-o-y (20% of revenue). EBITDA grew by 50.5% YoY 315 crore as EBITDA margin improved to 7.1% in Q1FY23 (from 6.4% in Q1FY22). PAT grew by 47.2% y-o-y 42.2 crores. The margin for CSL was cushioned by better margins made by IAC-2, which is expected to peak by H2FY24 as IAC-2 is scheduled to be commissioned in Sep-22. New orders viz. The NGMV (Next Gen Missile Vessel) and ASW Corvette, which will be the main revenue driver for Cochin, carry relatively low margins (NGMV – low double digit, ASW Corvette – high single digit). However, ship-repair, which has a slightly better margin, is expected to perform better. Therefore, the margin should not be too low. At the same time, we expect the increase in revenue to have less impact on profitability. near order book 10000 crore and 10000 crore in order inquiries and, CSL is expected to have a bright future ahead of CSL benefits from Make in India, Atmanirbhar Bharat and indigenous defense products. In addition, discussions regarding India’s requirement for a third aircraft carrier (IAC-3) are in process and the company’s management is of the view that CSL is ready to take up the larger project.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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