Multibagger defence stock loses steam in H2 of 2024, here's what analysts say 

Shares of Cochin Shipyard have turned weak in the second half of 2024. The multibagger stock, which closed at Rs 678.60 on December 29 last year hit a record high of Rs 2977.10 on July 8 this year, rising 339% in the first six months of 2024. However, the stock has fallen 40% till date from the close of Rs 2,806.40 on July 8.

In the last six months and three months too, the defence sector stock has undergone correction of 9% and 9.33%, respectively.

Kotak Securities sees Cochin Shipyard's fair value at Rs 800, a 52% downside to its current levels.

The stock is overvalued relative to the fundamental value of its businesses, the brokerage said.

Antique Broking has a price target of Rs 1627 on the stock.

"We roll over our earnings estimate to FY27 (from 1HFY27 earlier) and maintain HOLD rating with a target price of Rs 1,627 (earlier Rs 1,622) at a core target P/E multiple of 33x FY27 earnings," said the brokerage.

Riyank Arora, technical analyst at Mehta Equities said, 
"Cochin Shipyard is currently showing strong bullish momentum, supported by a robust technical structure and a significant surge in trading volumes. Immediate support is observed at Rs 1,550, while a breakout above Rs 1,560 suggests further upward potential. In the near term, the stock is poised to target levels of Rs 1,875 and Rs 1,950, driven by its positive technical indicators and sustained market strength."

A R Ramachandran, SEBI registered Independent analyst says, "Cochin Shipyard stock price is bullish but also slightly overbought on the Daily charts with next resistance at 1735. Investors should be booking profits at current levels as a Daily close below support of 1630 could lead to target of 1460 in the near term."

In the current session, Cochin Shipyard stock was trading on a flat note at Rs 1,690 on BSE. Cochin Shipyard’s market cap climbed to Rs 44,347 crore.

Total 0.66 lakh shares of the firm changed hands amounting to a turnover of Rs 10.96 crore in the afternoon session on BSE.

The multibagger stock has delivered returns of 147.68% in 2024 and risen 164% 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 65.8.

The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 200 day but lower than 100 day, 150 day moving averages.

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.