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Cochin Shipyard hits 7-mth high; up 26% in 1 week; what's behind the rally?
Cochin Shipyard stock price is trading at its highest level since September 24, 2024. It had hit a 52-week high of ₹ 2,977.10 on July 8, 2024.
The counter has seen huge trading volumes, with a combined 13.53 million equity shares representing 5 per cent of the total equity of Cochin Shipyard changing hands on the NSE and BSE.
What's behind the rally in Cochin Shipyard share?
The Central and State Governments are working with various stakeholders to promote shipbuilding and ship repair, in line with the Government of India's Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047.
According to media reports, HD Hyundai & Cochin Shipyard is in talks for a ₹10,000-crore project.
On clarification on news reports on Wednesday, May 14, 2025, after market hours Cochin Shipyard said that the company is also evaluating strategic possibilities with multiple entities which are at various stages. However, at this stage, there is no material event/ information that requires disclosure, the company said.
Meanwhile, in February 2025, Cochin Shipyard has entered into a Memorandum of Understanding (MoU) with A.P. Moller – Maersk to explore collaboration opportunities in ship repair, maintenance, and shipbuilding in India.
This aligns with the Government of India's Vision 2047 maritime objectives and recent Union Budget 2025-26 announcements to position India among the top global maritime hubs. ALSO READ |
9MFY25 financial performance
For April to December period of the financial year 2024-25 (9MFY25), Cochin Shipyard's revenue is up 20.4 per cent year-on-year (YoY) to ₹3062.3 crore, as ship-repair revenue is up 45.7 per cent YoY while ship-building revenue is up 10.6 per cent YoY.
During 9MFY25, execution in the ship-building segment (66 per cent of total) has been moderated (revenue grew 11 per cent YoY) while the execution in ship-repair segment remained strong (revenue grew 46 per cent YoY). With strong order backlog (estimated at ₹22,000 crore; ~5x trailing twelve months revenue) and pick-up in execution, we expect revenue growth to remain healthy in the coming period.
ICICI Securities view on Cochin Shipyard
The company is well positioned to benefit from significant order inflows in both defence and commercial shipbuilding, supported by a strong pipeline. The Indian Navy's plans to acquire warships, including an estimated ₹40,000 crore aircraft carrier, presents a major opportunity for Cochin Shipyard.
Additionally, analysts believe that the government's strong focus on improving India's maritime infrastructure will create significant opportunities in commercial ship-building across cargo and passenger segments. The government aspires to position India among the world's top five shipbuilding nations (currently India's position stands at 22 with less than 1 per cent share in the global ship-building market). ALSO READ | Here's why KRN Heat Exchanger shares are buzzing in trade on May 15
Furthermore, talks have begun with leading shipbuilders from South Korea and Japan to promote collaboration and enhance production capabilities in India. Europe also plans to replace its 2,500 vessels with green vessels, creating substantial demand for exports. The ship repair sector also shows promise, bolstered by the company's capabilities and government support. Recently, the company signed a MoU with AP Moller – Maersk to enhance ship maintenance, explore repair, construction opportunities. However, currently, the stock is trading above the brokerage firm's target price of ₹1,700 per share.
About Cochin Shipyard
Cochin Shipyard is one of the leading shipyards in India, located in the southern state of Kerala. The company was founded in 1972 and is owned by the Government of India. The Company is primarily engaged in shipbuilding and ship repair, catering to both the domestic and international markets.
The company is a 'Miniratna', Schedule-'A', Category-I CPSE, which is also a public limited company incorporated and domiciled in India. As at March 31, 2025, the Government of India holds 67.91 per cent of the Company's equity share capital.
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