Cochin Shipyard Surges 4% Ahead of Q4 Results: Earnings Preview, Target Price — All You Need to Know
The stock rose 4.44% to hit an intraday high of ₹1,774.95 apiece on the BSE.
Cochin Shipyard Surges 4% Ahead of Q4 Results: Earnings Preview, Target Price — All You Need to Know
Cochin Shipyard shares surged 4% today ahead of the defence PSU’s March quarter (Q4FY25) results. The stock rose 4.44% to hit an intraday high of ₹1,774.95 apiece on the BSE. The rally came after the shipbuilder held talks with HD Hyundai for a ₹10,000-crore project.
The company said that both the central and state governments are working with various stakeholders to promote shipbuilding and ship repair, which is in line with the Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047.
Q4 Earnings Preview
According to Kotak Institutional Equities, revenue is set to increase by 39% due to execution of ASW Corvette and NGMV projects, and the ship repair segment. Q4 sales are estimated at ₹1,702 crore against ₹1,226 crore in the year-ago period. Net profit is estimated at ₹273.60 crore, up 4% YoY in Q4.
Target price
Antique Stock Broking said that defence PSU’s order book stands at ₹22,500 crore, giving a revenue visibility for about five years.
It said, “As compared to Mazagon Dock and GRSE, the company’s order pipeline is relatively muted due to the deferral of IAC-II order. As a result, the stock may underperform MDL and GRSE, given inferior revenue visibility. We maintain HOLD rating with a target of Rs 1,481. Upside risk to this call may be triggered if IAC-II receives an Acceptance of Necessity from the DAC.”
The brokerage has given a ‘Hold’ rating with a target price of ₹1,481 on Cochin Shipyard.
