COCHINSHIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | COCHINSHIP | Market Cap | 45,602 Cr. | Current Price | 1,733 ₹ | High / Low | 2,547 ₹ |
| Stock P/E | 64.1 | Book Value | 219 ₹ | Dividend Yield | 0.56 % | ROCE | 20.4 % |
| ROE | 15.8 % | Face Value | 5.00 ₹ | DMA 50 | 1,505 ₹ | DMA 200 | 1,587 ₹ |
| Chg in FII Hold | 0.36 % | Chg in DII Hold | -0.42 % | PAT Qtr | 138 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 70.9 | MACD | 85.8 | Volume | 21,85,274 | Avg Vol 1Wk | 38,71,970 |
| Low price | 1,187 ₹ | High price | 2,547 ₹ | PEG Ratio | 4.99 | Debt to equity | 0.18 |
| 52w Index | 40.2 % | Qtr Profit Var | -25.3 % | EPS | 27.0 ₹ | Industry PE | 42.7 |
📊 Financials: COCHINSHIP demonstrates solid fundamentals with ROE at 15.8% and ROCE at 20.4%, reflecting efficient capital utilization. EPS of ₹27.0 supports earnings visibility. Debt-to-equity at 0.18 highlights low leverage, strengthening financial stability. However, quarterly PAT declined from ₹138 Cr. to ₹101 Cr. (-25.3%), showing profit volatility.
💹 Valuation: The stock trades at a P/E of 64.1, well above the industry average of 42.7, indicating premium valuation. Book value of ₹219 results in a high P/B of ~7.9. PEG ratio of 4.99 suggests growth is already priced in. Intrinsic value appears lower than current price, requiring cautious entry.
🏢 Business Model: COCHINSHIP operates in shipbuilding and defense manufacturing, benefiting from government contracts and infrastructure growth. Its competitive advantage lies in strong profitability, low debt, and institutional confidence with FII holdings up (+0.36%). However, reduced DII holdings (-0.42%) and profit decline highlight cautious sentiment.
🎯 Entry Zone: Attractive entry between ₹1,500–1,600, near DMA support levels. Long-term investors may hold for 3–5 years, with exit considerations if ROE falls below 14% or valuations remain stretched without earnings support.
Positive
- Strong ROCE (20.4%) and ROE (15.8%).
- Debt-to-equity ratio of 0.18 indicates low leverage.
- EPS of ₹27.0 supports earnings visibility.
- FII holdings increased (+0.36%), showing foreign investor confidence.
Limitation
- High P/E (64.1) vs industry average (42.7).
- PEG ratio of 4.99 indicates premium valuation.
- Quarterly PAT declined (-25.3%), showing profit volatility.
- DII holdings decreased (-0.42%), showing reduced domestic interest.
- RSI at 70.9 suggests near overbought levels.
Company Negative News
- Recent quarterly profit decline and reduced DII interest indicate cautious sentiment.
Company Positive News
- Strong ROCE and ROE highlight operational efficiency.
- Improved FII holdings reflect foreign investor confidence.
- Low debt levels strengthen financial stability.
Industry
- Shipbuilding and defense manufacturing sector benefits from government contracts and infrastructure growth.
- Industry PE at 42.7 suggests COCHINSHIP trades at a premium.
Conclusion
✅ COCHINSHIP is a fundamentally strong company with solid profitability and low debt. While valuations are expensive, entry near ₹1,500–1,600 offers safety. Holding for 3–5 years could yield solid returns if earnings growth sustains and institutional confidence stabilizes. Partial profit booking near ₹2,500–2,550 resistance is prudent for short-term investors.