Cochin Shipyard shares rise 5% on order win to build 40 ships

Shares of Cochin Shipyard Ltd rose 5% on Friday after the state-owned shipbuilder received orders to construct more than 40 vessels for customers in the US, Germany, Norway and other countries. The development highlights growing international interest in India's shipbuilding capabilities.

Cochin Shipyard shares rose 5% to Rs 1256 today against the previous close of Rs 1202. Market cap of the firm rose to Rs 32,280 crore.

Shipping Minister Sarbananda Sonowal said the Ministry of Ports, Shipping and Waterways is working to create a supportive ecosystem for domestic shipbuilding. He noted that a significant share of the overseas shipbuilding orders received by India has been directed to Cochin Shipyard.

The minister attributed the growing order flow to rising global confidence in Indian shipbuilders' manufacturing quality and capacity. A senior ministry official also said Russian entities had expressed interest in collaborating with Indian shipyards, including Cochin Shipyard, to build vessels in India.

Belgium has also indicated its willingness to work with India to promote shipbuilding, signalling the potential for further international collaboration in the sector.

Meanwhile, Kotak Equities has a 'sell' rating on Cochin Shipyard Ltd  with a target Price of Rs 860.

Choice Broking has an 'add' rating on Cochin Shipyard Ltd with a target price of Rs 1,565.

Brokerage Antique has a hold rating on the defence sector stock with a target price of Rs 1671. The brokerage believes that valuations continue to price in a more constructive execution outlook than what the current quarterly run-rate suggests, and remain at a sharp premium to peers such as Mazagon Dock Shipbuilders. 
 
Later, the stock ended 2% higher at Rs 1227, trimming some gains on BSE.