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
Market Cap | ₹ 50,321 Cr. |
Current Price | ₹ 1,913 |
High/Low | ₹ 2,100 / 272 |
Stock PE | 61.9 |
Industry PE | 63.2 |
ROCE | 21.4 % |
ROE | 17.2 % |
PEG Ratio | 5.5 |
Debt To Equity | 0.01 |
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
| Mar-23 | Mar-24 | 1 Year Change |
Promoters + | 72.86% | 72.86% | 0.00% |
FIIs + | 6.28% | 5.23% | -1.05% |
DIIs + | 3.78% | 2.45% | -1.33% |
Public + | 17.07% | 19.47% | 2.40% |
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
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