Defence Stock To BUY, 1310% RETURN: Rs 1100 crore order win; check target

“We would like to inform that Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of CSL, has entered into contract with Wilson ASA, Norway, for Design and Construction of 4 nos. of 6300 TDW Dry Cargo Vessels. Agreement has also been entered

into for additional 4 vessels of the same type which will be formally contracted within September 19, 2024. The overall project of 8 vessels is worth about Rs 1,100 crores and is to be executed within September 2028,” the company said in an exchange filing dated June 28.

Cochin Shipyard Share Price Target 2024: Budget 2024 Stock

Avinash Gorakshakar, the Head Research of Profitmart Securities and an ET NOW Panellist has a bullish stance on the defence sector stock.

In an episode of ET NOW Swadesh, aired on June 27, he said, “If you have an investment horizon of 6-12 months, a target of up to Rs 2500 can be comfortably achieved.”

Explaining the reasons why he thinks the stock will continue to give returns in the near future, Gorakshakar said, “This is because there are big announcements expected in the budget regarding defence, plus their current order book is very strong. The government is very positive about the marine sector. With some more announcements and incremental orders, the share certainly shows good upside potential.”

Cochin Shipyard Share Price History

Shares of Cochin Shipyard on Friday, June 28, closed at Rs 2,216.60 per share on BSE, down 1.13 per cent against its previous closing price.

Cochin Shipyard’s shares, as per BSE Analytics, has appreciated by 16 per cent in the past one month, 154 per cent in the past three months, and 225 per cent on an year-to-date basis. Looking back further, the defence sector stock, in the past one and two years, has delivered multibagger returns of 686 per cent and 1,310 per cent, respectively.

Cochin Shipyard is a constituent of S&P BSE 500 and boasts a market cap of Rs 58,209.25 crore, as of June 28’s closing.

Cochin Shipyard Q4 Results 2024

Cochin Shipyard reported multi-fold growth in its consolidated net profit to Rs 258.88 crore for the March 2024 quarter on account of higher income. It had clocked Rs 39.33 crore profit in the year-ago period, the company said in a regulatory filing.

The company’s total income rose to Rs 1,366.16 crore from Rs 671.32 crore in January-March FY23.

The company earned a revenue of Rs 985.15 crore from the shipbuilding segment against Rs 453.84 crore in Q4 FY23. From ship repairing, it has registered a revenue of Rs 300.89 crore compared to Rs 146.24 crore a year ago.

For the full FY24, the company’s profit more than doubled to Rs 783.27 crore from Rs 304.70 crore in FY23.

Cochin Shipyard Order Book

Cochin Shipyard has a total order book of Rs 22,000 crore, as of March 31, 2024, as per the company’s latest filing. Of this, the order value in the defence category is Rs 15,225 crore, in domestic category Rs 1,258 crore, and in export category Rs 3,480.

In addition to that, the company’s subsidiaries have a combined order book value of Rs 959 crore. Of this, Hooghly Cochin Shipyard has Rs 154 crore and Udupi Cochin Shipyard has Rs 805 crore.

Orders from ship repair segment is Rs 959 crore.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)