Cochin Shipyard Shares Trade Higher After Rs 200 Crore Order Win From ONGC

The shares of Cochin Shipyard Ltd., were trading higher after the company signed an agreement with ONGC for dry dock and major lay-up repairs of jack-up rig. The project is estimated at Rs 200 crore, according to an exchange filing and is expected to be completed in around 12 months.

The company also said that none of the promoter or promoter group have any interest in the entity that awarded the order.

Cochin Shipyard, last week, gave a final dividend of Rs 2.25 per share. The company in July said it has secured a new order for two 70-tonne Bollard Pull Tugs from Polestar Maritime Ltd. This comes as a follow-up to an earlier order for three similar tugs placed with Udupi Cochin Shipyard Ltd., a wholly owned subsidiary of CSL.

Cochin Shipyard's bottom line surged 8% during the first quarter of current fiscal. The company's net profit rose to Rs 187.83 crore for the quarter ended June 30 from Rs 174.24 crore for the same period last year. Revenue rose by 38.5% year-on-year for the three months ended June, reaching Rs 1,068.59 crore.

Cochin Shipyard stock rose as much as 2.62% during trade so far to Rs 1,940 apiece on the NSE. It was trading 0.60% higher at Rs 1,901 apiece, compared to an 0.35% advance in the benchmark Nifty 50 as of 10:07 a.m.

It has risen 10.22% in the last 12 months and 23.54% on a year-to-date basis. The total traded volume so far in the day stood at 5.4 times its 30-day average. The relative strength index was at 59.02.

One out of the three analysts tracking the company have a 'buy' rating on the stock, and two suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,504, implying a downside of 20.9%.