Cochin Shipyard buzzes in trade, jumps over 14%

Cochin Shipyard share price: Shares of Cochin Shipyard jumped as much as 14.29 per cent to hit a high of Rs 573.20 apiece on the BSE on June 5, Monday. At 02:10 PM, the stock was trading at Rs 573. In comparison, the benchmark S&P BSE Sensex was trading at 62,850.87, up 304 points, or 0.49 per cent. Cochin Shipyard is a part of the BSE500 index. At closing shares of Cochin Shipyard ended over 11 per cent higher on NSE at Rs 558.25 apiece.

Cochin Shipyards: Q4 Results

ICICI Securities notes that the company posted below expected performance in the ship-building segment. Revenue came in at Rs  600.1 crore (down 50.5% YoY). Both segments, shipbuilding and ship repair, witnessed a decline in revenues. Gross margin was at 13.2 per cent (2385 bps down YoY). At the EBITDA level, the company reported a loss of Rs 67.1 crore against a positive EBITDA of Rs 296.3 crore in Q4FY22. Adjusted PAT was at (-)Rs 22.5 crore against Rs 274.6 crore logged in Q4FY22 and Rs 110.4 crore in Q3FY23.

The brokerage further said that execution is expected to improve significantly over FY24-25E, which would drive the company's revenues. Margins are also expected to improve led by improving performance in the ship repair segment and operating leverage benefits. "We maintain our BUY rating on the stock," it said. The target price has been set at Rs 580.

About Cochin Shipyard 

Cochin Shipyard is one of the largest shipbuilding and maintenance facilities in India. It was conceived of in the year 1969 when a team surveyed various locations in India before selecting Cochin for the launch of the first Greenfield Shipbuilding Yard in the country. The yard, as per the company's website, facilities in the first phase were completed by 1982. The yard was designed and constructed under technical collaboration with M/s Mitsubishi Heavy Industries (M.H.I), Japan. The company was legally incorporated in the year 1972.