COCHINSHIP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 💰 Low debt (Debt-to-equity: 0.09) ensures financial stability and operational flexibility.
• 📊 Strong return metrics — ROCE at 20.4% and ROE at 15.8% reflect efficient capital deployment.
• 📈 EPS of ₹32.3 supports solid earnings visibility and valuation strength.
• 📉 Trading near DMA200 (₹1,733), offering technical support zone.
• 📈 Industry-leading position in shipbuilding and defense contracts provides long-term growth visibility.

⚠️ Limitation

• 📉 High P/E of 55.4 vs industry average of 47.4 suggests premium valuation.
• 📉 PEG ratio of 4.31 indicates valuation is stretched relative to growth.
• 📉 Quarterly PAT declined from ₹285 Cr. to ₹188 Cr., showing margin pressure.
• 📉 RSI at 46.0 and MACD at 0.57 reflect neutral technical momentum.

📰 Company Negative News

• 📉 FII holding declined by 0.65%, indicating reduced foreign investor interest.
• 📉 Volume below 1-week average suggests cooling investor sentiment.

🌟 Company Positive News

• 📈 DII holding increased by 0.15%, showing domestic institutional support.
• 📈 52-week low of ₹1,180 offers historical support level for accumulation.

🚢 Industry

• 🚢 COCHINSHIP operates in shipbuilding and marine engineering, benefiting from defense contracts and infrastructure expansion.
• 📊 Industry P/E of 47.4 reflects high growth expectations and strategic importance of the sector.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,700–₹1,750, near DMA200 and below recent highs for better risk-reward.
• 🕰️ Long-term holding favorable due to strong fundamentals, low debt, and strategic business model.
• ⚖️ Monitor earnings recovery and valuation metrics before aggressive accumulation.