Cochin Shipyard Bags Huge Orders From Europe, Stock Up 8%

Cochin Shipyard Ltd (CSL) is the largest shipbuilding and maintenance facility in India. The services provided by the shipyard are building platform supply vessels and double-hulled oil tankers. The stock of Cochin Shipyard has surged more than 8% and made a day high of Rs.1310 a piece in today’s morning trading session after the company received a large order worth between Rs.500-Rs.1000 crores from a European client.

About the order

Cochin Shipyard in its exchange filing has said that it has begged a large order from a European client, for the design and construction of a hybrid service operation vessel (Hybrid SOV) with an option for two more such vessels.

As per the company’s classification, orders in the Rs 500 crore to Rs 1,000 crore are termed as ‘large’ orders by them. Furthermore, CSL has said the vessel is equipped with hybrid battery systems that will improve energy efficiency and reduce carbon footprints. 

This 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 estimated to be completed by the end of 2026.

Stock Jumps 8%

With this order news, The stock of the PSU Company has jumped by more than 8% in today’s intraday trading session and it has made a day high of Rs.1310 a piece. The company has maintained a strong order book and on the back of this strong order book, the stock has surged about 380% over the past year. The stock is up by more than 90% in 2024. It has surely been one of the finest multi-bagger PSU stocks over the past year.

Conclusion: The stock has maintained a strong order book position of around Rs.21,400 crores as of December 31, 2023. The government of India is also focused on the encouragement of ‘Atmanirbharata’, The defence shipbuilding segment continues to look promising on the back of ambitious plans of the Indian navy. A number of RFPs for various shipbuilding projects have been floated by the Ministry of defence. 

With this the overall image for shipbuilding looks positive for the upcoming years also. The stock currently trades at Rs.1300 a piece up by 8% from its previous day’s closing price up by more than 380% over the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.