Cochin Shipyard shares fall for second session, defence stock under bear attack?

Shares of Cochin Shipyard slipped for the second straight session on Tuesday as investors booked profit after a five day rally. The defence stock fell over 1% on BSE today against the previous close of Rs 2302. Cochin Shipyard’s market cap slipped to Rs 59,725 crore. Amid the ongoing profit booking, the multibagger stock is overbought on charts, indicates its Relative strength index (RSI). The RSI stands at 71.8. A RSI above 70 signals the stock has more buyers than sellers in the market. 

As per short term and long term trend in terms of moving averages, the stock has been in the green. Cochin Shipyard shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Total 1,39 lakh shares of the firm changed hands amounting to a turnover of Rs 71.48 crore in early deals on BSE. 

The multibagger stock has risen 740% in two years and risen 1332.63% in three years.

Om Mehra, Technical Research Analyst at SAMCO Securities looks bullish on the stock despite the ongoing profit booking. 

"Cochin Shipyard has surged nearly 22.80% in the previous week, marked by strong momentum and a steep rise backed by rising volumes with extended support from Defence index. After touching Rs 2,545, the stock witnessed mild profit booking, and an evening star formation has appeared, a typical pause seen in extended rallies.

The broader trend remains intact, with the price holding well above all key moving averages and the Super trend support. The RSI is hovering above 70, indicating slightly overbought territory and hinting at the possibility of a short-term pullback or consolidation. MACD continues to reflect a strong bullish crossover, with positive histogram expansion supporting the underlying strength.

A retracement toward the Rs 2,160-2,100 zone could offer a favorable risk-reward entry point. This area aligns with recent breakout levels and prior congestion, making it a potential accumulation zone.
A minor dip toward Rs 2,160-2,100 can be considered healthy, and fresh entry opportunities may emerge for targets around Rs 2,500 followed by Rs 2,600 in the coming sessions."

Shitij Gandhi, Senior Analyst (Technicals), SMC Global Securities said, "From a technical perspective, the stock exhibits a robust setup, with prices trending within a well-defined rising channel. The bullish bias is expected to persist as long as the stock sustains above the key support level of Rs 2000. On the upside, the next potential upward move could propel the stock toward the Rs 2700 level."

AR Ramachandran, SEBI-registered independent analyst says, "Cochin Shipyard stock is bearish on the Daily charts and also overbought with strong resistance at Rs 2419. Investors should be booking profits as a Daily close below support of Rs 2350 could lead to a target of Rs 1926 in the near term."

Commenting on the fundamental outlook of the stock, Divyam Mour, Research analyst, SAMCO Securities said, "Cochin Shipyard is well-positioned for sustained growth, supported by a strong execution pipeline and recent infrastructure expansions, including the commissioning of its new dry dock and International Ship Repair Facility. These developments enhance its capabilities in the shipbuilding and repairs across defence and commercial segments. The company is actively exploring opportunities for setting up a major shipyard in South India, signaling long-term capacity expansion. With a robust order book exceeding Rs 21,700 crore and solid Q4FY25 performance, Cochin Shipyard remains a key beneficiary of India's maritime and defence indigenisation push, offering healthy earnings visibility and long-term value creation potential."

Q4 earnings of the firm were announced on May 15. Cochin Shipyard reported a 11% rise in net profit for the March 2025 quarter. Profit climbed to Rs 287.18 crore in the last quarter against Rs 258.88 crore in the year ago period. Revenue climbed 37% to Rs 1757.65 crore in the last quarter against Rs 1286.04 crore in the year ago period. 

However, EBITDA fell to Rs 253 crore in Q4 against Rs 286 crore on a year on year basis (YOY). The EBITDA margin slipped to 15.35% in Q4 against 23.35% in Q4 a year ago.

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.