Cochin Shipyard surges 9% on bagging large order from European client

Cochin Shipyard considers a deal valued between Rs 500 crore and Rs 1,000 crore as a large order.

Shares of Cochin Shipyard zoomed as much as 9 percent on May 14 as the company bagged a large order from a European client, for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels.

The vessel is equipped with hybrid battery systems that improve energy efficiency and reduce carbon footprint.

In a regulatory filing, Cochin Shipyard informed that the vessel is designed and built for the service, maintenance, and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand.

"The project is expected to be completed by the end of 2026," it said. As per Cochin Shipyard's classification, any order with a value of Rs 500 crore to Rs 1,000 crore is considered a large order.

"None of the promoter/ promoter group/ group companies have any interest in the entity that awarded the order. Further, the said order also does not fall under the purview of related party transactions," the company informed.

Cochin Shipyard is the largest shipbuilding and maintenance facility in India. It is part of a line of maritime-related facilities in Kochi. Services provided by the shipyard include building platform supply vessels and double-hulled oil tankers.

It built the first indigenous aircraft carrier for the Indian Navy, the INS Vikrant. The shipyard also trains graduate engineers in marine engineering. The PSU has Miniratna status.

At 11:30 am, Cochin Shipyard shares were trading 8.4 percent higher at Rs 1,295.50 on the National Stock Exchange (NSE). So far in the day, a total of 59 lakh shares of the company changed hands on BSE and NSE combined, compared to the 1-week and 1-month average trading volume of 32 lakh and 50 lakh shares, respectively.

In comparison, the benchmark Nifty has risen around 20 percent during this period. So far this year, the PSU stock has skyrocketed over 90 percent, nearly doubling investors' money.