The shares of Cochin Shipyard Limited are currently trading at Rs 554. The scrip witnessed an intra-day high of Rs 574, indicating a gain of around 6 percent as compared to the previous closing price of Rs 539.75. The company has a market capitalization of Rs 7,300 crores.
Such movements in the stock prices are observed after the company, through a regulatory filing with the exchange, informed about the receipt of an order from the Ministry of Defence (MoD) pertaining to the mid-life upgrade of an Indian Naval Ship. The contract value is estimated to be Rs 300 crores and the duration of completion of the same is 24 months.
Cochin Shipyard Limited is a company based in India that operates through two broad segments namely the ‘Shipbuilding’ and ‘Repair of Ships/Offshore Structures’. It generates a majority of revenue from the ‘Shipbuilding’ segment which offers products such as Aircraft Carriers, Bulk Carriers, Pollution Control Vessels, and many others.
The company, on a YoY basis, has witnessed a reduction in numbers as far as the operating revenues and net profits are concerned. The operating revenues took a shift down from Rs 3,190 crores during FY21-22 to Rs 2,364 crores in FY22-23. Moreover, the net profit figures, during the same time horizon, went down from Rs 563 crores to Rs 304 crores.
The return ratios, due to the above reasons, also went down with the return on equity (ROE) moving down from 12.83 percent during FY21-22 to 6.88 percent in FY22-23. Likewise, the return on capital employed (ROCE), keeping the timeframe the same, reduced from 16.48 percent to 7.99 percent.
According to the latest shareholding data available for the March 2023 quarter, Promoters of the company hold a 72.86 percent stake, and Foreign Institutional Investors (FIIs) hold a 6.28 percent stake in the company.
Written by Amit Madnani
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