Cochin Shipyard shares stuck in upper circuit of 5%, here's why 

Shares of Cochin Shipyard hit the upper circuit of 5% on Monday after the company inked a  Memorandum of Understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian market. In the current session, Cochin Shipyard stock rose 5% to Rs 1363.40 on BSE. Cochin Shipyard’s market cap climbed to Rs 35,868 crore.

Total 0.29 lakh shares of the firm changed hands amounting to a turnover of Rs 3.92 crore in the afternoon session on BSE.

The multibagger stock has delivered returns of 100% in 2024 and risen 143% in a year. In two years, the stock has risen 334.44%. The stock is trading neither in the oversold nor in the overbought zone, indicates its relative strength index (RSI) at 33.8.

The stock is amid a major bearish trend as it is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day ,200 day but higher than the 5 day and 10 day moving averages.

In an exchange filing, Cochin Shipyard, said, “We would like to inform you that Cochin Shipyard Limited (CSL) has entered into a Memorandum of Understanding (MOU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian Market.”

"Building on CSL’s extensive experience in ship construction and engineering and SLET’s renowned technical expertise and design capabilities, this partnership aims to capitalize on opportunities for Mobile Offshore Drilling Units (MODUs) designed to meet the needs of the Indian market. 3. This collaboration is in line with the Government’s efforts under the Make in India initiative," added the company.

Cochin Shipyard's consolidated net profit surged 4% to Rs 189 crore in the last quarter against Rs 182 crore profit in the corresponding quarter of the previous fiscal. Revenue climbed 13% to Rs 1143.2 crore in Q2 against Rs 1011.7 crore in the corresponding quarter of the previous fiscal. Cochin Shipyard's EBITDA surged 3.2% to Rs 197.3 crore in Q2 against Rs 191.2 crore in the corresponding quarter of the previous fiscal.

Cochin Shipyard Limited is engaged in the shipbuilding and ship repair business. The company is engaged in the construction of vessels and repairs and refits of all types of vessels including upgradation of ships periodical layup repairs and life extension of ships.