COCHINSHIP - Fundamental Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Fundamental List📊 Fundamental Analysis: Cochin Shipyard Ltd (COCHINSHIP) Fundamental Rating: 3.9
⚙️ Core Financials Snapshot
Profit Growth
PAT surged from ₹177 Cr to ₹287 Cr ➜ Quarterly jump of 10.9%
EPS at ₹31.4 ➜ respectable earnings momentum
Return Ratios
ROE: 15.6% | ROCE: 20.0% ➜ good efficiency, above industry average
Leverage & Payouts
Debt-to-equity: 0.10 ➜ strong balance sheet, virtually debt-free
Dividend Yield: 0.55% ➜ moderate shareholder reward
💸 Valuation Metrics
Metric Value Interpretation
P/E Ratio 56.1 High — premium pricing vs. industry PE of 50.6
P/B Ratio ~8.33 (₹1,766 / ₹212) ➜ priced richly vs book value
PEG Ratio 4.16 Growth not justifying valuation ➜ caution warranted
📉 Verdict: Overvalued — high P/E and PEG suggest optimism is priced in, and future upside may be capped without fresh growth drivers.
⚓ Business Model & Strategic Position
India’s leading shipbuilding & marine engineering company
Strong order book in defense, commercial shipping, and green vessels
Moat elements
PSU-backed credibility
Advanced dry dock & repair infrastructure
Strategic ties with Ministry of Defence
📊 Institutional Sentiment
FII ↑ 0.99% ➜ foreign investor interest growing
DII ↓ 0.49% ➜ likely tactical trimming amidst valuation concerns
📉 Technical Picture
RSI: 31.1 ➜ approaching oversold — watch for reversal
MACD: -67.1 ➜ strong bearish trend
Price below 50 DMA, hovering above 200 DMA ➜ mixed signals
✅ Suggested Entry Zone: ₹1,650–₹1,700 🛒 Consider entry if price stabilizes & volume supports a reversal
📅 Long-Term Holding Perspective
Cochin Shipyard is best suited for
Investors favoring defense-linked PSU exposure
Portfolios seeking low debt, strong ROCE plays
Believers in India’s maritime infrastructure push
⚠️ That said, valuation demands are steep. Wait for earnings breakout or significant order inflows before increasing allocation.
If you'd like, I can compare COCHINSHIP with Mazagon Dock or Garden Reach for a full shipbuilding sector scan. Or we can screen undervalued PSU stocks with high ROCE. Just say the word. 🚢
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