Cochin Shipyard Q4 Results: PSU shipbuilder shares up 26% in 5 sessions ahead of earnings

Shares of state-run shipbuilder Cochin Shipyard Ltd. are trading with gains of as much as 7% on Thursday, May 15, ahead of the defence PSU's March quarter earnings. The stock is extending its gaining streak for the fifth day running.

Cochin Shipyard is scheduled to announce its fourth quarter results today. The board will also consider the recommendation for a dividend.

Brokerage firm Kotak Institutional Equities expects Cochin Shipyard to report a 39% revenue growth, driven by the execution of ASW Corvette and NGMV projects, and the ship repair segment.

Kotak sees March quarter sales at ₹1,702 crore, compared with ₹1,226 crore year-on-year. The brokerage sees Q4 profit at ₹273.60 crore, up 4% YoY as against ₹264.70 crore in the same quarter a year ago. Ebitda margins may come in at 21.8%, driven by a higher contribution from ship repair.

According to Antique Stock Broking, Cochin Shipyard's revenue growth is expected to remain healthy driven by short-cycle orders. It is targeting a sustained EBITDA margin of 20%–22% in the medium-term.

The brokerage noted that a rise in the share of ship-repair business can positively rub-off on blended margins. However, higher depreciation may drag earnings growth in FY26 as the company has completed an ₹2,800 crore capex programme in 2024.

Antique also said that Cochin Shipyard's present order book stands at ₹22,500 crore, which provides a revenue visibility of almost five years.

As compared to Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Enginers, the company’s order pipeline is relatively muted due to the deferral of IAC-II order. As a result, Antique expects the stock to underperform MDL and GRSE, given inferior revenue visibility.

Out of five analysts tracking on Cochin Shipyard, three has a 'Buy' rating, while one each has a 'hold' and a sell' recommendation.

Shares of Cochin Shipyard Ltd. are currently trading 5.23% higher at ₹1,788.30. The stock has risen nearly 26% in the last five days.

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