Volume Spurt Alert & Rs 22,500 Crore Order Book: Defence Ship Building Stock Rockets Over 10 Per Cent; Do You Own It?

The stock gave multibagger returns of 560 per cent in just 2 years whereas the BSE Sensex Index is up by 31.4 per cent.

On Tuesday, shares of Cochin Shipyard Ltd jumped 11.16 per cent to Rs 1,670 per share from its previous closing of Rs 1,502.35 per share. The stock’s 52-week high is Rs 2,977.10 per share and its 52-week low is Rs 1,169 per share. The company's shares saw a spurt in volume by more than 9 times.

Cochin Shipyard Ltd (CSL) is a leading player in the construction of all kinds of vessels, repairs and refits of all types of vessels, including periodic upgradation and life extension of ships. The company has a market cap of over Rs 43,000 crore and as of June 30, 2024, the company’s order book stands at approx. Rs 22,500 crore

According to Quarterly Results, net sales increased by 13 per cent to Rs 1,143.20 crore, operating profit increased by 7 per cent to Rs 298.41 crore and net profit increased by 4 per cent to Rs 188.92 crore in Q2FY25 compared to Q2FY24. In its annual results, net sales increased by 62 per cent to Rs 3,830.45 crore and net profit increased by 157 per cent to Rs 783.28 crore in FY24 compared to FY23. Looking at its half-yearly results, net sales increased by 29 per cent to Rs 1,914.67 crore, operating profit increased by 26 per cent to Rs 559.77 crore and net profit increased by 30 per cent to Rs 363.16 crore in H1FY25 compared to H1FY24.

Recently, Cochin Shipyard Limited (CSL), under the leadership of Shri Madhu S Nair, has formalised a significant partnership by signing an MOU with Drydocks World, a prominent DP World company headed by His Excellency Sultan Ahmed bin Sulayem. This strategic collaboration, witnessed by esteemed dignitaries including H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and Shri Piyush Goyal, is geared towards the development of advanced ship repair clusters across India. The initiative seeks to synergise the mutual strengths of both organisations, introduce global best practices to the nation's maritime sector, and substantially expand ship repair capacities while also exploring opportunities in offshore fabrication and engaging with major ports to modernise India's maritime infrastructure.

The stock gave multibagger returns of 560 per cent in just 2 years whereas the BSE Sensex Index is up by 31.4 per cent. Investors should keep an eye on this shipbuilding stock.

Disclaimer: The article is for informational purposes only and not investment advice.