Cochin Shipyard Share Price Hits Upper Circuit Limit On Defence Ministry Contract

Cochin Shipyard Ltd.'s share price rose as much as 5% to Rs 1,656.15 apiece.

Cochin Shipyard Ltd.'s share price resumed its rise after a one-session drop on Friday and rose to its upper circuit limit, recording its highest level since October 15.(Photo: PIB)

Cochin Shipyard Ltd.'s share price resumed its rise after a one-session drop on Friday and rose to its upper circuit limit, recording its highest level since October 15.

Monday's gains were on the back of the company's Rs 1,207 crore-contract with the defence ministry. In a press release, the Ministry of Defence said it has signed a contract with Cochin Shipyard Limited on Nov. 30 for short refit and dry docking of INS Vikramaditya.

After completion of the refit, INS Vikramaditya will join the active fleet of the Indian Navy with upgraded combat capability, the release added.

Before Friday's fall, the stock had gained nearly 22% in five sessions of gains.

The scrip rose as much as 5% to Rs 1,656.15 apiece. It was locked in its upper circuit limit as of 10:17 a.m. This compares to a 0.2% advance in the NSE Nifty 50 index.

It has risen 144.6% on a year-to-date basis. Total traded volume so far in the day stood at 1.08 times its 30-day average. The relative strength index was at 65.14.

Out of the five analysts tracking the company, three 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 26.7%.

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