Cochin Shipyard Share Price Hits Upper Circuit of 5%; Secures Naval Vessel Contract

On November 30, 2024, Cochin Shipyard announced that it had secured a ₹1,000 crore contract from the Ministry of Defence for the Short Refit and Dry Docking of a large Indian naval vessel, with a project duration of 5 months.

Cochin Shipyard share price traded 5% higher at ₹1,655.75 on the NSE at 10:00 AM, after opening at ₹1,630, up from the previous close of ₹1,576.95. The stock has gained 21.40% in the last 5 days. Last Thursday, it hit its 5% upper circuit limit for the fourth consecutive session, showcasing strong investor confidence.

Order Details Overview

Cochin Shipyard Limited (CSL) has entered into a contract with the Ministry of Defence (MoD) for the Short Refit and Dry Docking of a large Indian naval vessel.

The project, valued at over ₹1,000 crore, is expected to take approximately 5 months to complete.

The contract does not involve any related party transactions, and none of CSL’s promoters, promoter group, or associated companies have any interest in the awarded entity.

Q2 FY25 Financial Highlights

Cochin Shipyard reported a 4% year-on-year growth in net profit, reaching ₹189 crore for the second quarter ending September 30, 2024. In the same quarter of the previous fiscal, the company had posted a net profit of ₹182 crore, as per a regulatory filing.

The company’s revenue from operations increased by 13%, totalling ₹1,143.2 crore, compared to ₹1,011.7 crore in the corresponding period of the previous year.

This growth reflects Cochin Shipyard’s strong performance across its core business segments.

About Cochin Shipyard Ltd

Cochin Shipyard has diversified into the construction of floating structures and the manufacture of marine equipment. It has developed strong infrastructure for shipbuilding and offers specialised services, making it one of the largest and most efficient yards in India. The company is also focused on enhancing sustainability through green initiatives in its operations.

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.