Cochin Shipyard at new high

Cochin Shipyard is currently the top gainer on the BSE and has been so since the opening bell; the stock, which had closed at Rs.955.15, opened today morning slightly higher at Rs.956 but after that soon roared on to hit a new 52-week high at Rs.1136. Volumes are up almost 4 times.

The stock price is up as fund houses as well as brokerages are looking at the stock anew with more optimism for the future growth prospects.

The PSU shipyard company derives lion’s share of its income from the Indian Navy. Analysts expect the company to have a healthy order book and revenue stream to grow consistently given the stable order book and great efficiency in building and repairing all types of vessels.

The company recently signed a contract to build India’s largest Trailer Suction Hopper Dredger (TSHD) of 12,000 cubic metres for Dredging Corporation of India (DCI) in partnership with the market leader IHC, Netherlands.

Currently, the stock price is driven purely by opportunity seekers.