Cochin Shipyard's Stock Climbs 5% on Bourses, Check Out What led to the Rally

Cochin Shipyard share price: The public sector shipbuilding company experienced a major surge in its share price on Monday after the company signed a contract with the Ministry of Defence last week. As per the official statement, the value of the contract is worth more than Rs 1,000 crore.

At 10:30 am, the Cochin Shipyard shares were trading at Rs 1,656 price level, up by 5 per cent on the National Stock Exchange.

"We would like to inform that Cochin Shipyard Limited (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 company stated in an exchange filing.

The estimated contract value is above Rs 1,000 crore and the estimated duration for the project is around five months, the filing further read.

Even last week, the shares of the shipbuilder hit an upper limit of 5 per cent after the company announced it had signed a Memorandum of Understanding with SLET (Seatrium Letourneau USA, Inc.) for the design and supply of critical equipment for jack-up rigs in the Indian market.

Cochin Shipyard Q2 Performance

The company's Q2 performance fell short of expectations as the shipbuilder reported a minor 4 per cent year-on-year increase in net profit, reaching Rs 189 crore.

The revenue figure stood at Rs 1,143.2 crore, marking an increase of nearly 13 per cent from Rs 1,011.7 crore recorded in the corresponding quarter of the previous year.

However, margins took a minor hit in Q2. The Ebitda margin declined to 17.3 per cent, down from 18.9 per cent recorded in the previous year's same period.

On year-to-date basis, the shares of the company have delivered a multibagger return of more than 143 per cent on the bourses. But, during the last 6 months, the stock price has declined by more than 17 per cent.