Cochin Shipyard partners with HD Korea for shipbuilding, maritime development; stock up 2%

Cochin Shipyard Ltd on Friday signed a Memorandum of Understanding (MoU) with South Korea's HD Korea Shipbuilding & Offshore Engineering (KSOE) to explore long-term collaboration in shipbuilding and maritime development. KSOE is renowned globally for its expertise in designing and constructing commercial vessels, naval platforms, and offshore infrastructure.

The MoU outlines several areas for cooperation, including joint exploration of new shipbuilding opportunities both in India and internationally. It also emphasises the sharing of technical expertise to meet global shipbuilding standards.

This strategic partnership aligns with India's broader vision to become a global maritime hub, supported by initiatives such as the Rs 25,000 crore Maritime Development Fund.

The MoU announcement came post-market hours today. Earlier in the day, Cochin Shipyard shares settled 2.08 per cent higher at Rs 2,057.25.

Bourses BSE and NSE have put the securities of Cochin Shipyard under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Technically, the scrip traded higher than the 5-day, 50-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-day and 30-day SMAs. Its 14-day relative strength index (RSI) came at 50.10. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 64.21 against a price-to-book (P/B) value of 10.18. Earnings per share (EPS) stood at 32.04 with a return on equity (RoE) of 15.86. According to Trendlyne data, Cochin has a one-year beta of 1.4, indicating high volatility.

The state-run defence company has recently joined hands with Drydocks World to enhance its ship repair and offshore fabrication capabilities. This collaboration is aimed at establishing a world-class ship repair ecosystem catering to both domestic and international fleets.

As of March 2025, the government held a 67.91 per cent stake in the state-run firm.