Cochin Shipyard shares rise 8% on Q1 earnings

Shares of Cochin Shipyard rose nearly 8% in early deals on Friday after state run firm reported a 77 percent rise in net profit for the June 2024 quarter. Cochin Shipyard shares climbed 7.70% at Rs 2,490 on Friday against the previous close of Rs 2311.80 on BSE. Market cap of the defence stock rose to Rs 63,485 crore.

Cochin Shipyard stock opened higher at Rs 2444.80 on BSE. Total 0.95 lakh shares of the firm changed hands amounting to a turnover of Rs 23.20 crore on BSE. Cochin Shipyard has a one-year beta of 1.1, indicating very high volatility during the period.

The stock has delivered multibagger returns of 254% in 2024 and risen 631% in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 42.1, signaling the stock is trading neither in the overbought nor in the oversold zone. Cochin Shipyard shares are trading higher than the 100 day, 150 day, 200 day but lower than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages.

Net profit rose to Rs 174.2 crore in the first quarter compared to Rs 98.6 crore in the corresponding period of the previous financial year. However, net profit fell 33 percent from Rs 258.8 crore in the March quarter.

The firm’s revenue from operations rose 62.1 percent to Rs 771.47 crore in the last quarter against Rs 475.86 crore in the year-ago period. But, it fell significantly from Rs 1,286 crore in the previous quarter

At the operating level, EBITDA climbed 125.29% to Rs 177.3 crore in the first quarter  against Rs 78.7 crore in the corresponding period in the previous fiscal.

EBITDA margins rose to 23% in Q1 against 16.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The cost of materials consumed in the June quarter almost doubled to Rs 316.6 crore from Rs 166.4 crore in the same period a year ago. It was Rs 626.5 crore in the March quarter.