Cochin Shipyard Limited was up 2% in the afternoon trade on June 15 after its subsidiary received a Rs 580-crore deal for cargo vessels from a Norwegian firm.
Wilson Shipowning AS, Norway, has ordered a next-generation diesel-electric 3800 DWT (deadweight) general cargo vessel from Cochin Shipyard's wholly-owned subsidiary, Udipi Cochin Shipyard Limited. The contract calls for the purchase of eight vessels.
The 'Future Proof Dry Cargo Vessel' Project is estimated to cost Rs 580 crore. "The first vessel will be delivered by December 2024, and subsequent deliveries will be completed by March 2026," said Cochin Shipyard Limited in an exchange filing.
On June 9, India's largest shipyard was named the winner of a Rs 300 billion Indian Navy contract. In the last six months, the stock has dropped nearly 8%.
The shipbuilding company's net profit fell 86 percent year on year to Rs 39.3 crore in the January-March quarter of FY23. Revenue fell by 49 percent to Rs 671.3 crore.
According to ICICI Securities, the firm has a solid order book, international orders, and projects lined up for the next two to three years. During fiscal years 24 and 25, it will complete big contracts.
The stock gets a "buy" rating from a domestic brokerage firm, with a target price of Rs 580.
The stock was trading at Rs 559 on the National Stock Exchange at 2.29 p.m., up 1.85 percent from the previous close day.
