Cochin Shipyard tops Rs 2,000-mark for 1st time since Aug 2024; here's target price

Shares of Cochin Shipyard Ltd jumped over 13 per cent in Friday's trade to breach the Rs 2,000-mark for the first time since August 30, 2024. The stock gained after the defence PSU delivered a beat on margins in the March quarter. The stock climbed 13.39 per cent to hit a high of Rs 2,055. This was the first time that the stock hit the Rs 2,000-mark since August 30, 2024.

On that day, last year, the stock hit a high of Rs 2,024, before closing the day below the psychological mark at Rs 1,889.90. Thanks to a 68 per cent rally from March low, the stock has now revisited the level today.

Cochin Shipyard's estimated order book of Rs 22,500 crore provides a book-to-bill ratio of almost 5 times, which is good enough to drive a 14 per cent CAGR in revenue growth over FY25-28, Antique Stock Broking said. 

Despite being the largest shipyard by capacity and the only one with prior experience building aircraft carriers, the timeline for a second carrier project at Cochin Shipyard remains uncertain. However, the company’s ship repair business presents significant growth potential, Antique said.

That said, the brokerage maintains a cautious view, noting that its target price suggests limited upside—or even downside—from current levels.

Cochin Shipyard's stock has surged 28 per cent over the past week, outperforming peers like Mazagon Dock Shipbuilders (up 13 per cent) but slightly behind Garden Reach Shipbuilders & Engineers (up 29 per cent).

For the March quarter, Cochin Shipyard’s standalone revenue exceeded estimates by 22 per cent, driven by strong execution. Sales grew 35 per cent year-on-year and 54 per cent quarter-on-quarter.

That said, the defence PSU reported an Ebitda margin of 15.3 per cent, down 790 basis points year-on-year, leading to a 17% miss on Antique's Ebitda  estimates.

Despite the margin pressure, net profit (PAT) came in at Rs 280 crore — 11 per cent above expectations—driven largely by a 96 per cent YoY jump in other income.

As a result, Antique has raised its EPS estimates for FY26 and FY27 by 15 per cent each. The brokerage maintains a HOLD rating on the stock but has revised its target price upward to Rs 1,640 from Rs 1,481), valuing the stock at 45 times FY27 core P/E.