Cochin Shipyard shares end 6-session rally, slip below Rs 2,000 mark; here's what analysts have to say

Shares of Cochin Shipyard Ltd declined on Monday, ending a strong six-session winning streak. The stock slipped as much as 3.66 per cent to an intraday low of Rs 1,960.05. It was last seen down 2.64 per cent at Rs 1,980.90. Despite the dip, the scrip has shown a significant gain of over 33 per cent on a monthly basis.

The defence PSU reported an 11 per cent year-on-year (YoY) increase in net profit for the January–March 2025 quarter, with profit rising to Rs 287.18 crore from Rs 258.88 crore in the same period last year. Revenue surged 37 per cent to Rs 1,757.65 crore in Q4 FY25, compared to Rs 1,286.04 crore in Q4 FY24.

Following the recent strong rally, market experts largely indicated that some profit booking is likely, with few advising a cautious approach moving forward. 

"We've witnessed exuberance in defence stocks, especially in Cochin Shipyard. Even though there is an earnings visibility, the stock has entered the overbought zone. As the counter has rallied and is up around 50 per cent from its bottom, one should book some profit off the table," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Rs 2,100 would act as strong resistance for the counter, advised Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi. "A breakout above this resistance level can only open the path for Rs 2,300–2,350 levels. Given the recent sharp rally, some profit booking has occurred near the resistance zone. Traders should consider a cautious approach and monitor market sentiment and sector trends closely," Patel stated.

"Support will be at Rs 1,950 while near-term resistance will be at Rs 2,100-2,150 levels," said Ravi Singh, SVP - Retail Research at Religare Broking.

"Cochin Shipyard's stock has surged by over 20 per cent this month. After such a significant upward shift, a pullback can be anticipated that warrants a cautious investment approach. The Rs 1,835-1,800 range is expected to provide cushioning against any upcoming declines, while the breakout neckline at Rs 1,730 might serve as a critical support level. On the upside, the stock may gradually rise towards Rs 2,300 in the coming period," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

The state-owned defence recently collaborated with Drydocks World to boost ship repair and offshore fabrication capabilities. The partnership aims to play a pivotal role in developing a world-class ship repair ecosystem for domestic and international fleets. 

As of March 2025, the government held a 67.91 per cent stake in the state-run firm.