Multibagger defence stock hits record high, up for third session; what should investors do?

Shares of Cochin Shipyard Ltd hit their record high today amid a crash in the broader market. Cochin Shipyard shares hit a fresh high of Rs 887.85, rising 12.12% against the previous close of Rs 791.85 on BSE.  Market cap of the defence stock climbed to Rs 22,501 crore.  

The stock has delivered multibagger returns of 159.54% in the  last six months. The stock is trading in the green for the third consecutive session. Earlier, Cochin Shipyard stock opened higher at Rs 794.50 on BSE. Total 8.45 lakh shares of the firm changed hands amounting to a turnover of Rs 72.24 crore on BSE. Cochin Shipyard has a one-year beta of 0.5, indicating very low volatility during the period. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 69.1, signaling the stock is neither overbought nor oversold on technical charts. Cochin Shipyard shares are trading higher than the 5 day, 20 day, 50 day, 100 day, 200 day moving averages.    

Cochin Shipyard has a one-year beta of 0.5, indicating very low volatility during the period.  

Brokerage firm ICICI Direct has assigned a buy call to the defence stock with a target price of Rs 1340 per share. According to the brokerage firm, "order pipeline remains strong in defence and commercial ship-building and ship-repair segments including exports. About Rs 13000 crore worth of ship-building contracts are in pipeline; tenders expected to be floated in medium term. Apart from these, Rs 84,000 crore worth of orders are in RFP stage as per the management." 

 Abhijeet from Tips2trades said, “Cochin Shipyard stock price is bullish but also overbought on the daily charts with next resistance at Rs 922. Investors should book profits at current levels as a daily close below the support of Rs 818 could lead to Rs 755 in the near term.” 

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.  

 

 

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