In Friday’s trading session, the shares of one of the defence stocks specialising in constructing a wide range of vessels, including tankers, bulk carriers, offshore platforms, and naval ships hit 5 percent upper circuit upon receiving work orders worth Rs. 450 crores for eight 70-tonne bollard pull tugs.
Price action
With a market capitalization of 38,387 Crores on Friday, the shares of Cochin Shipyard Limited hit 5 percent upper circuit making a high of Rs 1,540 compared to its previous closing price of Rs 1,490.10.
What Happened
Cochin Shipyard Limited specializes in constructing a wide range of vessels, including tankers, bulk carriers, offshore platforms, and naval ships.
Cochin Shipyard Limited’s wholly owned subsidiary Udupi Cochin Shipyard Limited (UCSL) has received the largest order for eight 70-tonne bollard pull tugs worth Rs. 450 crores from Adani Ports and Special Economic Zone Ltd (APSEZ).
This order, part of the government’s Make in India and Aatmanirbhar Bharat initiatives, aims to boost local manufacturing and enhance maritime self-reliance. The tugs, expected to be delivered between December 2026 and May 2028, will improve the efficiency and safety of operations at Indian ports.
This collaboration reflects APSEZ’s commitment to supporting India’s maritime infrastructure and leveraging world-class local manufacturing capabilities. APSEZ, part of the Adani Group, operates 15 strategically located ports in India and is expanding its global reach.
About the company
Cochin Shipyard Ltd is a premier shipbuilding and ship repair company based in Kochi, Kerala, and is one of India’s largest and most technologically advanced public sector shipyards. Established in 1972, Cochin Shipyard specializes in constructing a wide range of vessels, including tankers, bulk carriers, offshore platforms, and naval ships.
Cochin Shipyard is renowned for its expertise in building high-quality ships and offshore platforms, as well as providing services in marine engineering and fabrication. It has earned a solid reputation for constructing specialized vessels such as Liquefied Natural Gas (LNG) carriers, passenger ships, and other complex marine structures.
Order book Segmentation
Cochin Shipyard Ltd. has a robust order book of Rs. 22,500 crores, with defence contracts making up the largest share of Rs. 15,028 crores (70%). Commercial orders total Rs. 4,452 crores, split between domestic (Rs. 1,225 crores, 6%) and exports (Rs. 3,227 crores, 15%). Additionally, subsidiaries contribute Rs. 2,057 crores (9%), while ship repair orders are valued at Rs. 1,000 crores.
Financials
The company’s revenue rose by 13 percent from Rs 1,100.41 crore to Rs 1,244.34 crore in Q2FY24-25. Meanwhile, Net profit inclined from Rs 181.53 crores to Rs 188.92 crore during the same period.
Key Financial ratios
Cochin Shipyard Limited has an impressive Return on Equity (RoE) of 16.42 percent and a Return on Capital Employed (RoCE) of 20.99 percent. Furthermore, the company’s debt-to-equity ratio is 0.1.
Written by Sridhar J
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