At roughly 11:55 a.m. on Thursday, Cochin Shipyard’s (CSL) shares soared to Rs 1,129.55 per share, increasing by over 18% during intraday trading on the National shares Exchange. The stock had reached a 52-week high of Rs 1,146 earlier in the day.
A brief about shares of Cochin Shipyard are up nearly 18% in early trading
The value of CSL’s shares has increased 24.95% over the last five trading days. The company’s shares have increased 71% in a month and more than 113% since the year’s commencement.
The largest public shipyard in the nation, CSL, gets the majority of its funding from military contracts. Construction of navy ships, Coast Guard projects, commercial shipbuilding, and ship repair services are some of its main revenue generators.
It should be mentioned that the success of the shipbuilding industry is highly related to the needs of the military industry, and CSL just won a sizable shipbuilding contract for the production of 6 Next Generation Missile Vessels (NGMV) for the Indian Navy.
The value of the company’s order book has been greatly increased by this accomplishment. The government’s dedication to improving port and inland water infrastructure, which opens doors for Indian shipyards to fulfill rising demand, is highlighted in CSL’s annual report for FY23.
Notably, CSL collaborated with IHC, a market leader based in the Netherlands, to execute a contract to construct the largest Trailer Suction Hopper Dredger (TSHD) in the nation, a 12,000 cubic meters vessel for the Dredging Corporation of India (DCI).
This important project puts CSL in a good position for other prospects in this industry.
India Ratings and Research (Ind-Ra) predicts that CSL’s order book will continue to be strong and that its revenue will expand steadily in the foreseeable future.
According to the statement, CSL’s solid order book and excellent skills in building and repairing a wide range of vessels—including aircraft carriers, cargo ships, and technological demonstration vessels—in India serve as the foundation for the positive outlook.
Additionally, Hooghly Cochin Shipyard Limited (HCSL), a wholly-owned subsidiary of CSL in West Bengal, has obtained orders in the short sea/coastal and inland segments, preparing the business to further tap into this prospective market.
CSL has a competitive advantage in the offshore wind market thanks to its history of producing offshore support ships for the oil and gas sector. A European client recently awarded CSL a contract to build two luxurious Construction Support Operation Vessels (CSOV), with an option to build an additional four vessels.
