Cochin Shipyard, RVNL shares in focus on order wins; key details

Multibagger PSU stocks: Shares of defence PSU Cochin Shipyard Ltd and railway stock Rail Vikas Nigam Ltd (RVNL) are in focus on Monday morning on recent order wins. Cochin Shipyard on Saturday said it has signed a contract with the Ministry of Defence (MoD), the government of India, for short refit and dry docking of a large Indian naval vessel.

The defence PSU said the estimated contract value is above Rs 1,000 crore and the estimated duration for the project is around five months. The PSU clarified that the said order does not fall under the purview of related party transaction.

RVNL, on the other hand, informed stock exchanges BSE and NSE that it has emerged as the Lowest Bidder (L1) from PSPCL for development of distribution infrastructure work for Package-3 Central Zone.

This is for execution of HT/LT Infrastructure loss reduction works under reforms-based and results-linked, revamped distribution sector scheme (RDSS) in the state of Punjab. The cost of work is Rs 642.56 crore, including applicable taxes and the order would be executed in 24 months.

Cochin Shipyard shares were up 18 per cent past week and 131.38 per cent in 2024 so far. RVNL shares, on the other hand, were down 4.45 per cent past week but still up 139.25 per cent in 2024 so far.

Last week only, RVNL received Letter of Acceptance from South Central Railway for engineering, procurement and construction (EPC) contract agreement for doubling of track between Parbhani to Parli stations totalling 58.06 kms. The work included electrification & signaling works in connection with Parbhani-Parli doubling project of South Central Railway in the state of Maharashtra.

In the case of Cochin Shipyard, it recently entered into a Memorandum of Understanding (MOU) with Seatrium Letourneau USA, Inc (SLET) for the design and critical equipment for jack-up rigs for the Indian Market. The partnership aimed to
capitalise on opportunities for Mobile Offshore Drilling Units (MODUs) designed to meet the needs of the Indian market and the collaboration was in line with the government’s efforts under the "Make in India" initiative.