Cochin Shipyard Share Price Climb by 8% on European Order Win

Cochin Shipyard's share price gained more than 9% in morning trades on Tuesday. This surge follows the announcement of an order from a European client for the construction of a Hybrid Service Operation Vessel or SOV. The order revealed post market hours on Monday is classified as large valued between ₹500 to1000 crore.

Order Details

European client has commissioned Cochin Shipyard to design and build a Hybrid SOV with an option for two additional vessels. These vessels will be equipped with hybrid battery systems enhancing energy efficiency and reducing carbon footprints. They are intended to serve the service, maintenance and operational needs of the offshore wind farm industry in European market where sustainable energy solutions are in high demand. This project is scheduled to be finished by the end of 2026.

Cochin Shipyard's international order book is growing bolstering its earnings outlook. In April the company signed a Master Shipyard Repair Agreement with the United States Navy. These international orders are complementing strong domestic order inflows driven by India's Make in India initiative and are contributing to the company's improving earnings prospects.

Stock Performance & Financial Expectations

Share price opened at ₹1238.65 on the BSE marking a 3.65% increase from the previous day's close. It continued to climb reaching an intraday high of ₹1310.60 a gain of over 9%. Cochin Shipyard has provided multibagger returns to investors with the share price increasing by more than 380% over the past year. Stock is now trading near its 52 week high of ₹1378.95 seen on 30 April 2024.

For the quarter ending March 2024 Antique Stock Broking anticipates that Cochin Shipyard will report a revenue growth of 64% year on year reaching ₹945 crore. Earnings before interest, tax, depreciation and amortisation or EBITDA are expected to rise to ₹170 crore a turnaround from the EBITDA loss of ₹66 crore in the same quarter last year.

Cochin Shipyard the largest shipbuilding and maintenance facility in India is a major player in the maritime industry based in Kochi. It offers a range of services including the construction of platform supply vessels and double hulled oil tankers. The shipyard built the INS Vikrant the first indigenous aircraft carrier for the Indian Navy. In addition to its construction projects Cochin Shipyard also provides training for graduate engineers in marine engineering. As a Public Sector Undertaking it holds Miniratna status reflecting its role and achievements in the industry.

To Summarize

Cochin Shipyard's strong performance and promising future outlook are driven by international orders including a large European contract for hybrid vessels and robust financial growth projections. This has led to gains in its share price benefiting investors.