Cochin Shipyard shares in focus after order win; multibagger PSU stock up 680% in 1 year

Shares of multibagger Cochin Shipyard Ltd are in focus on Monday morning after a wholly-owned subsidiary, Udupi Cochin Shipyard, won an order from Norway's Wilson ASA for design and construction of four 6300 TDW dry cargo vessels. This is a follow up order in continuation of the contract awarded in June 2023 for design and construction of six 3800 TDW dry cargo vessels, which are now at advanced levels of construction at the yard at Udupi, Karnataka.

Cochin Shipyard shares are up a solid 224 per cent in 2024 so far. The PSU stock has soared 680 per cent in the past one year.

Wilson ASA is a short sea fleet operator in Europe. It transports about 15 million tonnes dry cargo across Europe. Cochin Shipyard said an agreement has been entered into for the additional four vessels of the same type, which will be formally contracted within September 19, 2024.

"The vessel is of 100 meters length and has a deadweight of 6300 metric tonnes at a design draft of 6.5 metres. The vessels should be designed by Conoship International, Netherlands and shall be constructed as an environment friendly diesel electric vessel for the transport of general cargo in the coastal waters of Europe. The overall project of 8 vessels is worth about Rs 1,100 crores and is to be executed within September 2028," Cochin Shipyard said in a stock exchange filing.

Since takeover of the yard by Cochin Shipyard Limited, UCSL has successfully delivered two 62T Bollard Pull Tugs to Ocean Sparkle Limited, an Adani Harbor Services Limited company and one 70T Bollard Pull Tug to Polestar Maritime Limited, first lot of the Tugs with Approved Standard Tug Design & Specifications (ASTDS) promulgated by the Government of India for Indian Ports under AatmaNirbharBharat initiative.

UCSL has also received further orders of four 70T Bollard Pull Tugs as repeat orders from Ocean Sparkle Limited (three) and Polestar Maritime Limited (one).