About Company

• Cochin Shipyard is into shipbuilding (Defence, Commercial & Offshore), Ship repair, Marine Engineering Training and Strategic & Advanced Solutions.
• Incorporated in the year 1972, Cochin Shipyards is located in Kochi, Kerala.
• Apart from this it has ship repair facilities in Mumbai, Kolkata, Andaman & Nicobar , Udupi and Howrah
• It has built and delivered 21 large vessels, 35 offshore support vessels, 93 small & medium vessels and 31 defence vessels as of FY23
• Cochin Shipyards has 39% market share in Ship Repairs
• Company’s Shipbuilding order book as on Q3 FY24 was 21500 Cr

Revenue Breakup

Company operates in two segments-

Ship Building (60.2% of Revenue) – Manufactures Tankers, Product Carriers, Bulk Carriers, Passenger Vessels, Air Defence Ships.

Ship Repair (23% of Revenue)- upgrades and repairs for all types of ships including ships for the oil exploration industry.

Fundamental Analysis

Key Ratios

Financial Trend

Revenue

• Old Value (Jan-20): 3,422 crore
• New Value (Jan-24): 3,645 crore
• Revenue increased by approximately 6.52% from January 2020 to January 2024.

Net Profit

• Old Value (Jan-20): 638 crore
• New Value (Jan-24): 813 crore
• Net Profit increased by approximately 27.43% from January 2020 to January 2024.

Shareholding Pattern

Change in Shareholding Pattern

Promoters

• Shareholding (Mar-23): 72.86%
• Shareholding (Mar-24): 72.86%
• Change: 0.00%
• Analysis: The shareholding of promoters has remained constant over the period, indicating no change in their stake.

Foreign Institutional Investors (FIIs)

• Shareholding (Mar-23): 6.28%
• Shareholding (Mar-24): 5.23%
• Change: -1.05%
• Analysis: The shareholding of FIIs has decreased by 1.05 percentage points. This suggests a reduction in the investment by foreign institutional investors.

Domestic Institutional Investors (DIIs)

• Shareholding (Mar-23): 3.78%
• Shareholding (Mar-24): 2.45%
• Change: -1.33%
• Analysis: The shareholding of DIIs has decreased by 1.33 percentage points. This indicates a reduction in investment by domestic institutional investors.

Public

• Shareholding (Mar-23): 17.07%
• Shareholding (Mar-24): 19.47%
• Change: +2.40%
• Analysis: The shareholding of the public has increased by 2.40 percentage points. This increase suggests that public investors have bought more shares during this period.

Stock Price Returns

 1 Year Returns

Cochin Shipyards 608% returns in 1 year

• 1 Year Returns: 608.75 % which means 6x returns within 1 year
• If you have 1 lakh invested in June 2023, then as on today  it would have been 7.08 Lakhs in June 2024

Cochin Shipyards: 5 Year Returns

• 5 Year Returns: 880.27 % which means 8x returns within 5 years
• If you have 1 lakh invested in June 2020, then as on today  it would have been 9.88 Lakhs in June 2024
• CAGR for 5 years : 57.86%

Cochin Shipyards Valuation

• Current PE: 61.9
• Median PE: 9.4 (5 years)
• As the Median PE is less than the current PE, company is overvalued
• Company’s EPS (earnings per share) has not increased but the stock price has increased exponentially & that too more than 600% within a year.

Should you Invest ?

• Cochin shipyards Ltd is fundamentally strong company with very minimal debt
• This recent rally of 600% within a year that was due to the Modi Government’s focus on the defence sector stocks due to this we have witness this great rally.
• Cochin Shipyards is overvalued company as the Median PE is less than the Current PE.
• At the Current Market Price of 1913, it does not makes sense to invest in such company no doubt the company is really great as it is overvalued
• 5 Years (2020-2024) Revenue Growth Rate: 6.5% & 5 years (2020-2024) Stock price returns: 880% which simply does not co-relate, Avoid such companies as of now.
• There are various opportunities in the Defene Sector Companies you can invest in those companies. (Check out: Next Multibagger in Defence sector- DCX Systems)

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Cochin Shipyards Ltd.
  
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
• If you have any further queries, please comment below. We will be happy to answer all your questions.
• If you like this information, share the article with as many people as possible