Shares of Cochin Shipyard Ltd continued their strong upward run in Friday’s trade. The stock moved 7.38 per cent higher to trade at a 52-week high of Rs 2,034. The company is scheduled to come up with its fourth-quarter (Q4 FY24) results later in the day. It will also consider the recommendation of final dividend, if any, for FY24.
Earlier this month, the firm informed exchanges that it has bagged a ‘large’ order from a European client to design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels. In terms of valuations, Cochin Shipyard’s project classification of a large order is between Rs 500 crore and Rs 1,000 crore.
“The vessel is equipped with hybrid battery systems to improve the energy efficiency and reduce the carbon foot prints. The vessel is designed and built for the service, maintenance and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand. The project is expected to be completed by the end 2026,” it stated.
On the technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 86.36. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company’s stock has a price-to-equity (P/E) ratio of 44.30 against a price-to-book (P/B) value of 5.60. Earnings per share (EPS) stood at 45.29 with a return on equity of 12.64.
“The stock has led from the front and has witnessed a strong uptrend in the last two weeks. Currently, it has crossed most of our targets as of now. The bias is maintained very strong. Next expected higher targets will be Rs 2,200 in the coming days with support maintained at the Rs 1,710 zone,” said Shiju Koothupalakkal – Technical Research Analyst at Prabhudas Lilladher.
“Cochin Shipyard’s scrip can hit an upside target of Rs 2,050 in the near term. Keep stop loss placed at Rs 1,750,” said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
As of March 2024, promoters held a 72.86 per cent stake in the company.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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