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Cochin Shipyard soars 13% on heavy volumes; zooms 100% from February low
Shares of Cochin Shipyard hit an over nine-month high at ₹2,363.30, soaring 13 per cent on the BSE in Thursday's intra-day trade amid heavy volumes.
The stock price of state-owned shipbuilding company was quoting at its highest level since August 12, 2024. It had hit a record high of ₹2,977.10 on July 9, 2024. Cochin Shipyard's stock price has doubled from its 52-week low of ₹1,180.45, which it touched on February 18, 2025.
At 02:30 PM; the stock was quoting 11.5 per cent higher at ₹2,328, as compared to 0.44 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over three-fold. A combined 21.52 million shares representing 8.2 per cent of total equity of Cochin Shipyard changed hands on the NSE and BSE.
What's behind Cochin Shipyard's 64% surge in 4 weeks?
On May 13, 2025, media reported that HD Hyundai & Cochin Shipyard were in talks for ₹10,000 crore project.
On clarification on news report on May 14, 2025, Cochin Shipyard said that the Central and State Governments are working with various stakeholders to promote shipbuilding and ship repair, in line with the Government of India's Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047.
Cochin Shipyard is also evaluating strategic possibilities with multiple entities which are at various stages. However, at this stage, there is no material event/ information that require disclosure, the company said. "With respect to the various reports circulating in the media, we would like to clarify that Cochin Shipyard has not issued any statement on the matter. Such reports may be based on threading pieces of information," the company said. On April 8, Drydocks World, a DP World company and a leading service provider for the maritime and offshore oil and gas, and renewable energy industries globally, signed a Memorandum of Understanding (MoU) with Cochin Shipyard, to enable development of Ship repair clusters, synergizing mutual strengths.
The MoU also provides for cooperation in potential offshore fabrication opportunities engaging other entities like major ports. This collaboration will explore opportunities to develop ship repair clusters along India's coastline leveraging the expertise of both organizations. This partnership is expected to contribute significantly to the growth of India's maritime sector positioning the country as a global leader, the company said in statement.
In February 2025, Cochin Shipyard entered into a MoU with A.P. Moller - Maersk to explore collaboration opportunities in ship repair, maintenance, and shipbuilding in India. This aligns with the Government of India's Vision 2047 maritime objectives and recent Union Budget 2025-26 announcements to position India among the top global maritime hubs.
ICICI Securities view on Cochin Shipyard
Cochin Shipyard is well positioned to benefit from significant order inflows in both defence and commercial shipbuilding, supported by a strong pipeline. The Indian Navy's plans to acquire warships, including an estimated ₹40,000 crore aircraft carrier, present major opportunity for Cochin Shipyard.
Additionally, the brokerage firm believes that the government's strong focus on improving India's maritime infrastructure will create significant opportunities in commercial ship-building across cargo and passenger segments. Government aspires to position India among the world's top five shipbuilding nations (currently India's position stands at 22 with less than 1 per cent share in global ship-building market).
Analysts expect Cochin Shipyard to witness significant YoY growth in revenues & profitability over FY24-27E, led by execution pick-up in both the segments and increasing share of margin accretive ship-repair segment.
About Cochin Shipyard
Cochin Shipyard is one of the leading shipyards in India, located in the southern state of Kerala. The company was founded in 1972 and is owned by the Government of India. The company is primarily engaged in shipbuilding and ship repair, catering to both the domestic and international markets. As at March 31, 2025, the Government of India holds 67.91 per cent of the company's equity share capital.
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