Cochin Shipyard shares jump over 3% as company wins Defence Ministry contract - Buy, Sell or Hold?

Cochin Shipyard Share Price Target NSE, BSE: Shares of Cochin Shipyard Limited, one of the largest shipbuilding and maintenance facilities in India, jumped around 3.11 in the morning trade today i.e. on December 21. The counter opened at Rs 1242 and soon hit an intraday high of Rs 1262. Last seen, the scrip held firmly in green and was trading at Rs 1253.95 on the BSE. The counter has outperformed the sector by 1.25 per cent.

The jump in the share price came after the PSU defence firm informed exchanges that it had inked a contract with the Ministry of Defence (MoD). The contract, worth Rs 488.25 crores, was signed on December 19, 2023.

The contract involves repair and maintenance of the equipment and systems onboard the naval vessel.

"The work on the same has already been commenced during Q2 of FY24 based on the Approval of Necessity (AoN) from MoD, and is expected to be completed by Q1 of FY25," the company said in an exchange filing.

Cochin Shipyard share price target - Buy, Sell or Hold?

According to Sumeet Bagadia of Choice Broking, people should buy shares of Cochin Shipyard if there's any dip with an immediate target of Rs 1,300. 

Bagadia said shares may rally once they cross the barrier of Rs 1,300. 

Cochin Shipyard Limited, which now has a market capitalization of Rs 16,494.51 crore, has been the premier shipyard in India for both commercial and defence shipbuilding and repairs.

For the September quarter, the company reported a net profit of Rs 181.5 crore, a growth of 61 per cent compared to the same period last year. Revenue for the period also grew by 48 per cent year-on-year to Rs 1,011.7 crore compared to Rs 683.2 crore from the same period last year.