Cochin Shipyard Ltd. - Mid and Long Term Opportunity

Dec 4, 2023

Date: 4-Dec-2023
Rating: Buy (Mid Term as well as Long Term Opportunity)
LTP: Rs. 1,188.65
Target: (1) Rs. 1,258 --> (2) Rs. 1,497++

Outlook:
The order book of COCHINSHIP has jumped to Rs. 22,000 crore, which is six times its expected revenue in the current fiscal. Further, the company is eying new projects having a bidding pipeline of about Rs. 84,000 crore for the next one year. In the first half of the current fiscal, COCHINSHIP has achieved about 35 percent of the revenue guidance of about Rs. 4000 crore for the fiscal 2024.

To counter China in Indian Ocean region, India plans to have 160 warships by 2030 and 175 by 2035 at an estimated cost of two trillion rupees. The INS Vikrant joined the fleet last year and was made by a popular Defense Public Sector Undertaking (DPSU) Cochin Shipyard Limited.


Disclaimer: I am not a SEBI registered analyst/consultant and not recommending anyone to take any BUY or SELL position in stock market. Investing in stock market is risky and one should do a self analysis and validation before investing in stock market.

Dec 6, 2023

Note

6-Dec-2023
Target 1 of Rs. 1,258 reached.
Heading towards the 2nd target.

Dec 16, 2023

Note

16-Dec-2023
Cochin Shipyard on 14-Dec-2023 announced the stock split at 1:2 ratio. The record date fixed for the same is 10-JAN-2024. The 1:2 stock split is going to reduce the stock price by half but at the same time it will double the quantity of stock in your portfolio. The stock split will have no impact on the market value of stock and hence one’s P&L. One recent example of stock split in PSU is HAL. HAL got split on 28-Sep-2023. It went sideways for some days due to split but look at the growth after that.

Jan 9

Note

9-Jan-2024
LTP: 1338
Tomorrow stock will split at 1:2 and the stock price will be pushed to around 669. However, quantity of stock in your portfolio will double. Your market value and profit/loss will remain same but it will be now available at lower price and will be more attractive to buy.

Jan 10

Note

10-Jan-2024:
LTP: 802.80. Stock has split on 10-Jan at 1:2 and opened at 669. Post that it jumped to 802 and locked in UC.

Target 2 of Rs. 748 reached. (Before split Target 2 was set at Rs. 1,497 which becomes 748.50 after split.)

TARGET 3: Rs. 942

Jan 31

Note

31-Jan-2024
LTP: 912.20
COCHINSHIP - 3rd target of Rs. 942 reached. 53% up from suggested level.

NEXT TARGET: Rs. 1,136
Indicators are still showing strength in trend and also today's order win from European Client may propel it to 1,136.

Feb 15

Note

Updates: 15-Feb-2024
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LTP: Rs. 860.85
With recent fall, COCHINSHIP has retraced about 16% from previous high. Post that it again started showing the strength. Revising the target post current retracement.

NEXT TARGETS: (4) Rs. 945 --> (5) Rs. 1,040

Mar 13

Trade closed: target reached

13-Mar-2024:
Broke down minor uptrend line. Closing the call and exiting to book the profit.
Suggested at: 594.325
LTP: 730.8
Profit: 23%