Defence stock engaged in shipbuilding, ship servicing/repair, marine engineering and many more hit a 5 percent upper circuit in the day’s trade upon signing contract worth Rs. 1,000 Crores with the Ministry of Defence.
Price Action
With a market capitalization of Rs. 43,560 Crores, the shares of Cochin Shipyard Limited hit a 5 percent upper circuit at Rs. 1,655.75 per equity share, from its previous day’s close price of Rs. 1,576.95.
What Happened
Cochin Shipyard Limited has signed a contract with the Ministry of Defence (MoD), Government of India, for Short Refit and Dry Docking of a Large Indian Naval Vessel for a consideration of ~Rs. 1,000 Crores and it is estimated to be completed within 5 months.
About the Company
Cochin Shipyard Limited is engaged in the business of shipbuilding, ship servicing/repair, and marine engineering, and it provides training and strategic and advanced solutions. I
As of Q2FY25 Cochin Shipyard Limited has reported a strong order book of ~Rs. 22,500 Crores. It has a global presence and has delivered its vessels to various countries like USA, Germany, Netherlands, Norway, Denmark, and the Middle East.
The Key Shipbuilding clients of the Cochin shipyard on the domestic front include the Indian Navy, the Indian Coast Guard, the Ministry of Home Affairs, the Shipping Corporation of India Limited, Lakshadweep Government, various Port Trusts, and many More.
Financials and Ratios
Its revenue from operations grew by 13 percent from Rs. 1,100.41 Crores in Q2FY24 to Rs. 1,244.34 Crores in Q2FY25, accompanied by profits of Rs. 182 Crores to Rs. 189 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 16.42 percent, and a return on capital employed (ROCE) of 20.99percent. It has reported a debt-to-equity ratio of 0.1.
Written by: Bharath K.S
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