Cochin Shipyard has witnessed a remarkable surge in its stock value over the past year, with its share price soaring by nearly 298% from the previous trading price of ₹902.45. The company, known for its expertise in shipbuilding and ship repair, has seen its shares rally amidst favorable market conditions. On Friday’s trading session, Cochin Shipyard’s stock closed 0.59% higher at ₹901.65 on the BSE. Over the past three months, the stock has climbed by 39%, while in the last six months, it has recorded an impressive jump of almost 80%.
Domestic brokerage firm ICICI Direct Research has assigned a ‘buy’ rating to Cochin Shipyard Stock, setting a target price of ₹1,055. The bullish outlook is underpinned by the company’s strong fundamentals, including its proficiency in shipbuilding and repair, and a robust order backlog poised to drive future growth.
“We find Cochin Shipyard’s valuations attractive given its multiple growth catalysts. Our target price for Cochin Shipyard is ₹1,055, representing a FY26E P/E of 36x,” stated the brokerage.
Highlighting Cochin Shipyard’s advanced infrastructure and capacity in shipbuilding and repair, including the newly commissioned International Ship Repair Facility (ISRF) and dry dock facility, ICICI Direct Research projects significant revenue growth driven by a pickup in execution and a substantial order backlog exceeding ₹22,300 crore as of December 23.
The brokerage further emphasized the promising outlook for Cochin Shipyard in both commercial and defense sectors, with a robust order pipeline and anticipated tenders in the medium term. With contracts worth over ₹9,000 crore already secured for ship construction and additional contracts in the request for proposals (RFP) stage amounting to ₹84,000 crore, the company stands poised for substantial growth, particularly in defense shipbuilding.
“Over the forecast period of FY24–26E, Cochin Shipyard is expected to witness notable year-on-year growth in revenues and profitability, driven by enhanced execution and a higher share of margin-accretive ship repair activities. After a period of de-growth from FY20–23, we anticipate revenue and profit after tax (PAT) to grow at approximately 23% and 36% CAGR, respectively, from FY23–26E,” noted ICICI Direct Research in its report.
