Fireworks for Cochin Shipyard shares! The company’s shares hit 5% upper circuit at Rs 1,656.15 per share after it signed a pact with the Ministry of Defence. The contract is for Rs 1,000 crore for a period of five months. The project is for a Short Refit and Dry Docking of a Large Indian Naval Vessel.
“We would like to inform you that Cochin Shipyard (CSL) on November 30, 2024, has signed a contract with the Ministry of Defence (MoD), Government of India, for Short Refit and Dry Docking of a Large Indian Naval Vessel. The estimated contract value is above Rs.1,000 crore and the estimated duration for the project is around 5 months. None of the promoter/ promoter group/group companies have any interest in the entity that awarded the order. Further, the said order also does not fall under the purview of related party transactions,” said the company in an exchange filing.
Cochin Shipyard’s financial performance in Q2
The shipbuilder reported a 4% year-on-year increase in net profit standing at Rs 189 crore for the second quarter of FY25, compared to Rs 182 crore in Q2 FY24. The company’s revenue from operations rose 13% on year to Rs 1,143.2 crore in Q2 FY25 against Rs 1,011.7 crore in Q2 FY24.
Also Read Fixed Deposits: 7 banks offering more than 8% return on fixed deposits Honasa Consumer shares plunge 20% below IPO price as company reports first loss in 5 quarters Nifty 50 firms’ earnings may slip to 5-year low Broader market riskier due to weak earnings
Cochin Shipyard Vs Nifty 50
The stock of Cochin Shipyards is still 42% lower than its recent peak. However, the stock has gained 15.6% in the last five trading sessions. It has risen 10% in the past one month. However, it erased investors’ almost 18% of wealth in the past six months. However, the stock has delivered multi-bagger returns of over 140% from year to date and 178% in the last one year.
To compare, the benchmark index, Nifty 50, has risen 0.74% in the last five trading days. However, the index has given a return of 0.55% in the last one month and 3.7% in the past six months. The index delivered 11% of returns from year to date and 16.6% in the past one year.
» Read More
