Cochin Shipyard Share Price At 10-Month High Boosted By High Trading Volumes

Share price of defence major Cochin Shipyard Ltd. rose as high as 8% in early trade on Friday, with the counter observing trade on a high volume.

The Nifty Midcap constituent has had a bull run in the recent past, with stock soaring 35% in the last one month. Ten out of the last 15 trading sessions have seen Cochin Shipyard shares end in the green. Year-to-date, the counter has given returns of nearly 60%, as defence stocks continue to gain momentum in the wake of the Pahalgam terror attacks and the counter-operations that ensued.

Cochin Shipyard's fourth quarter net profit and revenue saw growth. However, its margin contracted. The company's consolidated net profit was up 11% to Rs 287.19 crore in the quarter ended March. This compares with Rs 258.88 crore in the same period last year.

Its revenue rose 36.6% to Rs 1,757.65 crore, compared to Rs 1,286.95 crore in the same period last year. Despite the rise in revenue and net profit, Ebitda experienced a decline of 8%, falling to Rs 265.78 crore from Rs 289.19 crore. The Ebitda margin contracted to 15.1%, compared to 22.5% last year.

In addition to its financial results, Cochin Shipyard has announced a final dividend of Rs 2.25 per share.

Shares of the company rose as much as 8.26% to Rs 2,545 apiece, the highest level since Aug. 2, 2024. They pared gains to trade 4.09% higher at Rs 2,447 apiece, as of 10:04 a.m. This compares to a 0.25% decline in the NSE Nifty 50.

The stock has risen 58.64% on a year-to-date basis, and 31.31% in the last 12 months. Total traded volume so far in the day stood at 3.7 times its 30-day average. The relative strength index was at 80.2, indicating that the stock may be overbought.

Out of four analysts tracking the company, two maintain a 'buy' rating, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 43.1%.