Share Name:
Cochin Shipyard Ltd (NSE: COCHINSHIP, BSE: 540678)
Key Financial Metrics (as of May 14, 2025)
| Metric | Value |
|---|---|
| Market Cap | ₹41,487.84 Cr |
| PE Ratio (TTM) | 51.92 |
| Price/Book (PB) Ratio | 8.29 |
| Price/Sales Ratio | 5.99 |
| EPS (TTM) | ₹30.37 |
| Book Value/Share | ₹190.18 |
| Dividend Yield | 0.62% |
| Face Value | ₹5.00 |
| 52 Week High/Low | ₹2,979.45 / ₹1,168.00 |
| Beta | 0.28 |
| CAGR | 7.97% |
| Return (1 Week) | +17.44% |
| Return (3 Months) | +38.47% |
| Return (6 Months) | +30.43% |
| ROE | 16.42% |
| Debt to Equity | 0.10 |
Recent Share Price Movement
- The share price recently surged by nearly 13% to reach ₹1,790.60 amid high trading volumes.
Dividend
- Interim dividend of ₹3.5 per share declared on February 6, 2025 (70% on face value).
Ownership Structure (as of March 31, 2025)
- Promoter Holding: 67.91%
- Domestic Institutional Investors: 6.81%
- Foreign Institutional Investors: 2.88%
- Others: 22.4%
Business Overview
- Cochin Shipyard Ltd is a major player in shipbuilding and ship repair, with a strong track record in both domestic and international markets.
- The company operates in the Defence sector and is ranked 5th by market cap within its sector.
Management
- Chairman & Managing Director: Madhu S Nair
Factors That Can Drive Strong Performance for Cochin Shipyard
1. Order Book Expansion
- Cochin Shipyard, along with other state-run defence shipbuilders, is expected to see its order book more than triple by FY27, driven by a surge in defence contracts and a robust policy framework favoring indigenization and increased defence capex. This strong pipeline includes large naval projects and government-backed initiatives.
2. Strategic Partnerships and Collaborations
- Recent collaborations, such as the tie-up with Drydocks World, are set to boost Cochin Shipyard’s capabilities in ship repair and offshore fabrication, bringing global best practices and expanding its operational footprint6. Such partnerships can open new revenue streams and enhance technological expertise.
3. Government Policy Support
- The Indian government is aggressively promoting shipbuilding through enhanced financial assistance policies and a dedicated maritime development fund. These policies are designed to provide capital support for creating world-class shipyards and attracting international investments. This supportive environment can help Cochin Shipyard secure more contracts and scale up operations.
4. Participation in Mega Projects
- Cochin Shipyard is involved in discussions for a potential ₹10,000 crore shipyard in Thoothukudi with HD Hyundai, aimed at manufacturing large vessels for intercontinental trade. Such mega projects can significantly increase the company’s scale and global relevance.
5. Defence Sector Tailwinds
- The Defence Acquisition Council has approved massive orders worth ₹8.45 lakh crore between FY22 and FY25, with more lined up for FY26–27. Cochin Shipyard stands to benefit from this sustained government spending on naval assets and warships.
6. Recovery in Stock Price and Investor Sentiment
- After a period of correction, Cochin Shipyard’s stock has rebounded, supported by renewed investor interest following geopolitical developments and the announcement of large defence orders. Positive momentum in the share price can further attract institutional investors.
7. Strategic Shift and Business Diversification
- The company has announced a strategic shift to identify profitable stock groups and adapt to changing market dynamics, which could improve operational efficiency and profitability.
8. Dividend Payouts
- Regular and increasing dividend payouts, as seen in recent board recommendations, can enhance shareholder value and signal financial stability.
Summary Table: Key Performance Drivers
| Driver | Impact on Performance |
|---|---|
| Order book expansion | Revenue growth, long-term visibility |
| Strategic partnerships | Technology transfer, new markets |
| Government policy support | Capital access, contract wins |
| Participation in mega projects | Scale, international presence |
| Defence sector tailwinds | Sustained demand, large contracts |
| Stock price recovery | Improved sentiment, more investors |
| Strategic business shift | Adaptability, profit optimization |
| Dividend payouts | Attracts investors, signals strength |
Cochin Shipyard’s future performance will depend on its ability to capitalize on these factors, especially the execution of large orders, successful collaborations, and continued support from government policies
These metrics provide a snapshot of Cochin Shipyard Ltd’s current financial and market standing as of May 2025.
