Mazagon Dock vs Cochin Shipyard: Price targets, valuations, stop loss, resistance and more

Shares of Mazagon Dock Ltd and Cochin Shipyard Ltd are among the most sought after stocks in the defence sector. Both scrips have delivered multibagger returns in a year reflecting stellar investor interest during the period. While Mazagon Dock stock rallied 234%, shares of Cochin Shipyard shares rose 344% in a year.

In fact, Cochin Shipyard shares are trading near their record high. The stock ended at Rs 1,069.85 in the previous session after touching a record high of Rs 1,085 on April 3. That has brought the shipbuilding firm at 72.9 in terms of RSI, signaling the stock is trading in the overbought zone.

On the other hand, Mazagon Dock shares ended 1.73% lower at Rs 2196.60 on April 5, 2024. It is trading way below the record high of Rs 2,490 reached on April 5, 2023. Its RSI stands at 63.4 signaling the stock is trading neither in the overbought nor in the oversold zone.

In terms of valuation, Cochin Shipyard stock has a PE ratio of 50.49 compared to the sectoral PE of 51.34. In comparison, Mazagon Dock has a PE ratio of 30.03. Cochin Shipyard has a price to book ratio of 6.06. On the other hand, Mazagon Dock has a PE ratio of 10.86.

Here’s a look at what analysts said on the outlook and price targets of both defence stocks.

Mazagon Dock

Vaishali Parekh from Prabhudas Lilladher (PL) has given a 'Buy' call on the stock with a near-term target price of Rs 2,500.

"The stock has witnessed a decent slide in the last two months. It has now indicated a bullish candle formation moving past Rs 1,975 levels to improve the bias. One can anticipate a further upward move in the coming days. The RSI (Relative Strength Index) has recovered strongly from the oversold zone, indicating a positive trend reversal. We suggest buying it for an upside target of Rs 2,500 level. Keep stop loss at Rs 1,780," Parekh stated.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One said Mazagon has recouped with strong volumes, suggesting a reversal from its short-term trend.

"Rs 2,000 is likely to cushion any blip, followed by sacrosanct support at Rs 1,980-1,950 zone. On the higher end, the counter has a stiff resistance around Rs 2,300 and a decisive breach above the said level can only trigger a further upside till Rs 2,500 zone in the comparable period," Krishan stated.

Cochin Shipyard

Riyank Arora Technical Analyst at Mehta Equities said, "The stock witnessed a strong breakout above its important resistance mark of Rs 945 on April 1st, 2024, and has been moving in a continuous uptrend rally since then, touching levels of Rs 1074 in the last three trading days. With the current market price at Rs 1074, any pullback towards Rs 1000-1020 should be a good buying opportunity for the stock, and we can expect higher levels of Rs 1125 - 1150 with a trailing stop-loss placed at the Rs 1020 mark."

Vaishali Parekh, Vice President-Technical Research, Prabhudas Lilladher said, "Cochin Shipyard after a short consolidation phase has given a clear breakout above the rectangular box formation at Rs 940 levels and with bias getting stronger has scope for further fresh round of upward move with targets of Rs 1120 and Rs 1270 levels. One can maintain the stop loss at Rs 890 levels."

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, "The stock reached a new historic peak on Wednesday, on renewed momentum propelled by rising volumes. Going forward, until the stock trades over the key support of Rs 970 (needs to be considered on the closing basis), the momentum is anticipated to rally in the direction of Rs 1,200. Despite the price entering the overbought territory of the Relative Strength Index (RSI), the price sentiment has not deteriorated. The medium term support exists at Rs 871, its 50-DMA followed by Rs 756 which is its 100-DMA. The trend to witness accumulation above these key supports."

Stock Movement

On Thursday, market cap of Cochin Shipyard fell to Rs 28,145 crore. The stock has risen 357% from its 52 week low. It fell to a 52-week low of Rs 234.53 on May 25, 2023. Total 1.94 lakh shares of the firm changed hands amounting to a turnover of Rs 20.48 crore on BSE. Cochin Shipyard has a one-year beta of 0.4, indicating very low volatility during the period. Cochin Shipyard shares stand higher than the 5 day, 20 day, 50 day, 100 day, 200 day moving averages.

On the other hand, market cap of Mazagon Dock stood at Rs 44,303 crore in the previous session. Total 0.99 lakh shares of the firm changed hands amounting to a turnover of Rs 21.86 crore on BSE. Mazagon Dock has a one-year beta of 0.2, indicating very low volatility during the period. Mazagon Dock shares stand higher than the 5 day, 20 day, 50 day, 100 day, 200 day moving averages.