Shares of shipbuilding company Cochin Shipyard have witnessed a substantial rise in its stock price over the last one year and has continued to remain the darling of investors this year so far too. According to data from exchanges, Cochin Shipyard share price has rallied nearly 183% since the beginning of this calendar year while the Nifty 50 and Nifty 500 have rallied 5.6% and 10.5% during the same period, respectively. Investors since the last one year have been betting strongly on the PSU space, this is propelled by the government’s push to increase capex in the country, record order wins for these PSU companies and the PM Modi’s voice to invest in these companies.
Cochin Shipyard shares in the last two years have delivered returns of 1100% to its investors. As of Friday’s close, Cochin Shipyard share price stands at Rs 1,912.55 on the NSE. Cochin Shipyard‘s Q4 net profit also surged 558% on a YoY basis to Rs 258 crore against Rs 39 crore in the same period last year.
The Indian defence shipbuilding sector continues to show promise, fueled by ambitious procurement strategies outlined by the Indian Navy and Indian Coast Guard. This optimistic outlook not only augurs well for domestic shipbuilders but also underscores the robust ecosystem supporting their operations.
With the Indian government setting ambitious targets, aiming to elevate defence exports to US$5 billion by 2024–25, the sector’s growing importance and potential are underscored. This ambitious goal aligns with broader efforts to bolster India’s defence capabilities while fostering economic growth through increased exports.
The strategic emphasis on naval expansion plans, coupled with the government’s proactive stance on defence exports, is expected to propel the Indian shipbuilding industry to new heights. As the demand for technologically advanced vessels and maritime security infrastructure continues to rise, domestic shipbuilders are well-positioned to capitalize on these opportunities.
