fireworks for shares in the Cochin Shipyard! After the company inked a deal with the Ministry of Defence, its shares experienced a 5% increase in value, closing at Rs 1,656.15 per share. The deal is worth Rs 1,000 crore and will last for five months. The idea intends to dry dock a large Indian naval vessel and perform a brief refit.
We would like to notify you that on November 30, 2024, Cochin Shipyard (CSL) and the Ministry of Defence (MoD), Government of India, signed a contract for the dry docking and short refurbishment of a large Indian naval vessel. The project is expected to take about five months to complete, and the projected contract value is more than Rs. 1,000 crore. The organization that issued the order is not owned by any of the promoters, promoter groups, or group companies. Additionally, related party transactions are not covered by the aforementioned order,” the company stated in an exchange statement.
For the second quarter of FY25, the shipbuilder reported a 4% year-over-year increase in net profit, which stood at Rs 189 crore, up from Rs 182 crore in Q2 of FY24. Operating revenue for the company increased 13% year over year to Rs 1,143.2 crore in Q2 FY25 from Rs 1,011.7 crore in Q2 FY24.
Cochin Shipyards’ stock is still 42% behind its most recent high. Nonetheless, throughout the previous five trading sessions, the stock has increased by 15.6%. In the last month, it has increased by 10%. But in the last six months, it lost about 18% of investors’ value. The stock has, nevertheless, produced multi-bagger gains of more than 140% so far this year and 178% in the past year.
In contrast, over the past five trading days, the benchmark index, the Nifty 50, has increased by 0.74%. Nonetheless, the index has returned 3.7% over the last six months and 0.55% during the last month. The index has yielded gains of 11% so far this year and 16.6% over the last 12 months.
