Shares of Cochin Shipyard rallied 6.35% to ₹574 apiece in Monday's trade after the company, in an exchange filing, said that it has been declared as the lowest bidder by the Indian Navy for the mid-life upgrade of an Indian Naval Ship.
"The estimated value of the contract is approximately Rs. 300 crore, and it is expected to have a duration of around 24 months," the company said.
In March, the company secured an order from Netherlands-based Samskip Group, to design and construct two zero-emission feeder container vessels, with the possibility of adding two more vessels. The total project cost for this order is approximately Rs. 550 crore.
Furthermore, in November 2022, the company received an order valued at around Rs. 1,000 crore from a European client. The order is for the construction of two Commissioning Service Operation Vessels (CSOV), with an option to build four more of such vessels to be exercised by the owner within a year.
Cochin Shipyard is a Miniratna-listed small-cap stock with a market capitalization of ₹7,440 crore. The company is mainly engaged in the construction of vessels and repairs and refits, including the upgradation of ships, periodical lay-up repairs, and life extension of ships.
The company's shares witnessed a remarkable surge of almost 105% between August 2022 and December 2022, reaching their highest level of ₹687 apiece. This surge was fueled by the company's achievement of delivering India's first Indigenous Aircraft Carrier (INS Vikrant).
Overall, it ended CY22 with a gain of 50%, while in CY23 so far, the shares have delivered a modest gain of nearly 6%.
For the March-ending quarter, the company reported an 82.74% fall in its standalone net profit to ₹49 crore, compared to ₹284 crore in the corresponding quarter of the previous fiscal.
The revenue from operations also fell sharply during the quarter to ₹577 crore from ₹1,211 crore in the year-ago period.
The revenue from its shipbuilding segment dropped 54% QoQ to ₹436 crore, while the revenue from the ship repair segment fell by 44% QoQ to ₹140.36 crore.
03 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
