Shares of this midcap company jumped 4 percent in Wednesday’s trading session as PM Modi to inaugurate a hydrogen fuel cell ferry today. The shares have delivered a multibagger return of 292 percent to its shareholders in one year.
With a market capitalization of Rs. 23,476 crores, the shares of Cochin Shipyard Ltd started Wednesday’s trading session on a higher note at Rs. 866 compared to its previous close of Rs. 854.05. During the trading session, the shares hit a high of Rs. 903, gaining around 4 percet and are currently trading at Rs. 888 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that Prime Minister Narendra Modi will inaugurate the first indigenously developed and built hydrogen fuel cell ferry today. The inauguration of the project is planned to be done in virtual mode from Thoothukudi. Further, it
mentioned that this Fuel cell-powered vessel has zero emission, zero noise and is energy efficient which in turn reduces the effect of global warming.
Furthermore, the company highlighted that the inauguration of this project will provide the impetus for using Hydrogen in marine applications as envisaged under the National Green Hydrogen Mission and early adoption of hydrogen fuel cell technology in the marine sector will provide it with a global competitive advantage whereby meeting sustainable green energy aspiration of the Nation for net zero emission.
Coming onto the company’s financial statements, the revenue increased by 7 percent from Rs. 954 crores during the September quarter to Rs. 1,021 crores in the December quarter. In addition, the net profits zoomed by 30 percent from Rs. 191 crores to Rs. 248 crores during the same period.
The company has an order book of approximately Rs. 21,500 crores, where 78 percent of the orders were received from the defence sector and the remaining 22 percent were received from domestic, exports and subsidiaries.
In addition, Cochin Shipyard is working on significant naval projects like anti-submarine warfare shallow-water craft corvettes and next-generation missile vehicles. These projects are expected to contribute substantially to the defence order book over the next five years.
Cochin Shipyard has also allocated approximately Rs 1,800 crores for constructing a dry dock capable of handling large vessels. This project is set to be completed by December of FY24, enhancing the company’s capabilities.
Headquartered in Kerala, Cochin Shipyard was incorporated in 1972. The company is a leading player in the construction of all kinds of vessels, repairs and refits of all types of vessels including periodic upgradation and life extension of ships.
Written By Vaibhav Patil
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