Rs 22,500 Crore Order Book & 700 Per cent Returns; Shipbuilding Company Signs Landmark MOU to Set Up 2 Major Ship Repair Clusters

The stock has given a 1 year return of 20.84 per cent and a 3 year return of 739.93 per cent.

Cochin Shipyard Limited (CSL) has signed an important Memorandum of Understanding (MOU) with Drydocks World, a DP World company to set up ship repair clusters in India. This collaboration is aimed at improving the ship repair ecosystem with the help of the strengths of both the organizations and is in line with India’s Maritime India Vision 2030 and Maritime AmritKaal Vision 2047. The partnership will focus on the development of the world class maintenance and repair facilities at Kochi, Kerala, and Vadinar, Gujarat, and also look at opportunities in offshore fabrication and marine engineering. This initiative is expected to bring about the much needed modernization of India’s maritime infrastructure, expansion of the ship repair industry, and creation of employment opportunities and hence enhance India’s status as a hub for maritime engineering and self-reliance under the ‘Atmanirbhar Bharat’ initiative. The stock has given a fantastic 739.93 per cent return over three years, thus making it a multibagger stock.

This is expected to bring global best practices to the Ship repair ecosystem in the country and add significant capacities. The MOU also provides for cooperation in potential offshore fabrication opportunities engaging other entities like major ports. This collaboration will explore opportunities to develop ship repair clusters along India’s coastline leveraging the expertise of both organisations.

The MOU was signed in the presence of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister and Minister of Defence of the UAE, Shri Piyush Goyal, Honourable Minister of Commerce and Industry, Government of India, His Excellency Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World, Shri Madhu S Nair, Chairman & Managing Director, Cochin Shipyard Limited and other dignitaries at the CEO-Connect: Dubai-India Economic Ties & Opportunities event in Mumbai.

By fostering cooperation between Cochin Shipyard Limited and Drydocks World, the partnership will play a crucial role in modernizing India’s maritime infrastructure, expanding the ship repair industry and generating new employment opportunities. Aligned with the Government of India’s Maritime India Vision 2030 and Maritime AmritKaal Vision 2047, the companies will jointly evaluate opportunities for: Developing Ship Repair Clusters in Kochi (Kerala) and Vadinar (Gujarat) to create worldclass maintenance and repair facilities. Engaging with government entities such as major ports to enhance ship repair and offshore fabrication capabilities. Expanding collaboration into related areas such as offshore fabrication, marine engineering, and strategic infrastructure projects.

This partnership is expected to contribute significantly to the growth of India's maritime sector positioning the country as a global leader. By combining the technical expertise and industry experience of Drydocks World and Cochin Shipyard Limited, the collaboration will further strengthen India’s position as a hub for maritime engineering and self-reliance under the ‘Atmanirbhar Bharat’ initiative

Cochin Shipyard Limited is a leading shipbuilding and ship repair company established in 1972, with a focus on defense, commercial, and offshore vessels. The company has delivered 21 large vessels, 35 offshore support vessels, 93 small and medium vessels and 31 defense vessels as of FY23. It operates in two main segments: Ship Building, which contributed 72% of the revenue in 9M FY24, and Ship Repair, which contributed 28 per cent. CSL is currently working on zero emission green vessels like H2 Fuel Cell Vessel and Electric Catamaran Ferry.

In the Quarterly Results of December 2024, the company reported a revenue of Rs 1,069.88 crore, reflecting a YoY growth of 4.74 per cent compared to Rs 1,021.45 crore in December 2023. The operating profit stood at Rs 241.66 crore, marking a decline of 22.42 per cent from Rs 311.49 crore in the same quarter last year. The profit after tax (PAT) declined by 25.70 per cent to Rs 184.29 crore from Rs 248.02 crore in December 2023.

In FY24, the company posted a revenue of Rs 3,645.28 crore, registering a 56.42 per cent growth compared to Rs 2,330.46 crore in FY23. The net profit for the year stood at Rs 813.10 crore, up 143.09 per cent from Rs 334.49 crore in the previous financial year.

The company has completed two major expansion projects, the International Ship Repair Facility and a New Dry Dock, increasing its capacity. With an order book of Rs 21,500 crore including large orders for green vessels, CSL is ready to grow in the future. The company is also working on new projects such as autonomous surface vessels which is in line with the company’s strategic objectives.

The current stock price of Cochin Shipyard Limited as of April 09, 2025 is Rs 1378.75. The 52 Week High is Rs 2835.35, and the 52 Week Low is Rs 1056.9. The market capitalization of Cochin Shipyard Limited is Rs 36,272 crore. The stock has given a 1 year return of 20.84 per cent and a 3 year return of 739.93 per cent. The Price Earnings (PE) Ratio is 44.08. As of September 2024 the company has total orderbook of Rs 22,500 crore. The company has been maintaining a healthy dividend payout of 45.3 per cent.

Investors should keep an eye on this multibagger stock.

Disclaimer: The article is for informational purposes only and not investment advice.