Multibagger Miniratna PSU engaged in shipbuilding, ship servicing jumped 5 percent in the day’s trade after it received a work order worth Rs. 488 Crores from the Ministry of Defence.
At 11:08 a.m the shares of Cochin Shipyard Limited were trading at Rs. 1,270, up 3.70 percent from its previous day’s close price of Rs. 1,224.65 and its market capitalization is Rs. 16,679 Crores. It has delivered multi-bagger returns of 115 percent in a year.
Cochin Shipyard Limited has received a work order worth Rs. 488.25 Crores from the Ministry of Defence for the repair and maintenance of the equipment and systems onboard the naval vessel of the Indian Navy.
Cochin Shipyard Limited is engaged in shipbuilding, ship servicing/repair, marine engineering, and providing training, strategic and advanced solutions.
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.
Cochin Shipyard has a pan-India presence and it is focusing on expanding its footprints and developing a larger ecosystem for shipbuilding and repairs across the nation.
In terms of future prospects, it is Expecting revenue generation to commence from Naval weapons repairs and AMCs for defense vessels and it is working on building a New Dry Dock Project with a total project cost of Rs.1,799.00 Crores with a target completion on 31 Dec 2023 and International Ship Repair Facility (ISRF) Project with a project cost of Rs.970 Crores with a target completion date of June 2024.
As of Q2FY24, it generated 73.60 percent of its revenue from Shipbuilding and 26.40 percent from providing ship repair services. It has a strong shipbuilding order book worth ~Rs. 22,000 Crores and Ship repair orders worth Rs. 700 Crores
The company’s revenue from operations declined by 25.9 percent from Rs. 3,190.95 Crores in FY22 to Rs. 2,364.55 Crores in FY23, accompanied by profits of Rs. 563.96 Crores to Rs. 304.71 Crores.
Written by: Bharath K.S
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
