Cochin Shipyard gains on hopes of revival in repair segment

The state owned category -1 PSU, Cochin Shipyard, has entered an agreement for operation of marine dockyard in Andaman and Nicobar, which will enable the company to further strengthen its ship repair segment. The company has made a press release on stock exchanges, which stated that it has entered into an agreement with the Andaman and Nicobar (A&N) Administration to commence its operations at Marine Dockyard at Port Blair, a facility, currently being operated directly by the A&N Administration.

Under the agreement, Cochin Shipyard will assist the administration to set up a ship repair ecosystem at A&N islands and shall associate in augmentation and modernization of the facility. The company has nearly 23 per cent revenue share from the repair segment as of end of Q2FY20. The segment registered 46 per cent decline for the quarter on YoY basis due to high base last year owing to single large order. The expansion in Andaman and Nicobar region can certainly boost its revenues from this segment.

Cochin Shipyard is the first Greenfield company and presently the most modern shipbuilding and ship repair yard in India. The company mainly caters to the clients who are engaged in India’s defence segment and global commercial shipping sector.

Today, the stock of Cochin Shipyard jumped nearly 2 per cent and made an intraday high of Rs. 408.80 on the BSE.