Shares of this multibagger Defence stock jumped approximately 10 percent in Tuesday’s trading session after the company successfully secured an order from a European Client for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV). In the past month, the company’s stock gained nearly 25 percent for its holders.
With a market capitalization of Rs 34,063.70 crores, the stocks of Cochin Shipyard Limited started their trading session on Tuesday at Rs 1,238.65 and currently trades at Rs 1,294.80. The company’s scrip witnessed an intra-day high price of Rs 1,310.60, gaining around 10 percent compared to the previous close of Rs 1,195 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about successfully securing a ‘large’ order, i.e., an order worth between Rs 500 – Rs 1,000 crores, from a European Client.
The abovementioned order is received for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) along with an option for two more such vessels. The vessel is equipped with hybrid battery systems to reduce carbon footprints and improve energy efficiency.
Expected to be completed by the end of 2026, the vessel is designed and built for the service, maintenance, and operational needs of the ‘offshore wind farm’ industry in the European market.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, reported a jump in numbers with the former increasing from Rs 954 crores during Q2FY24 to Rs 1,021 crores during Q3FY24 and the latter, keeping the timeframe the same, rising from Rs 191 crores to Rs 248 crores.
According to the latest presentations, the company’s total Shipbuilding Order Book Position stands at approximately Rs 21,500 crores, of which nearly 78 percent is attributed to the Defence segment, 13 percent to the Commercial Exports, and the remaining to the Domestic Commercial Transactions and Others.
Keeping a purview of the last six months, the company’s stock has delivered multibagger returns of approximately 136 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.36 lakhs.
Founded in 1972, Cochin Shipyard Limited is an Indian-based company operating through two broad operating segments namely ‘Shipbuilding’, including products such as Oil Tankers, Bulk Carriers, Electric Passenger Ferries, etc, and ‘Repair of Ships/Offshore Structures’, including maintenance and repair of all types of vessels such as Tankers, Bulk Carriers, Aircraft Carriers, etc.
Written by Amit Madnani
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