Cochin Shipyard Limited (COCHINSHIP) AI Stock Analysis

• Market Cap: ₹358.15B
• Dividend Yield: 0.59%
• Average Volume (3M): 164.54K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 2.21
• Revenue Growth: 19.62%
• EPS Growth: -12.34%
• Country: IN
• Employees: 2,133
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 5.20
• Shares Outstanding: 263,080,780
• 10 Day Avg. Volume: 85,121
• 30 Day Avg. Volume: 164,545
• PEG Ratio: 7.85
• Price to Book (P/B): 6.57
• Price to Sales (P/S): 7.61
• P/FCF Ratio: -46.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 26.7
• Revenue Forecast (FY): ₹49.86B

• Rating: 65 Neutral
• Price Target: ₹1,460.00 ▼(-10.43% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Cochin Shipyard Limited's strong financial performance is offset by negative cash flow concerns and an overvalued stock price. Technical indicators show neutral momentum, suggesting a cautious outlook. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Sustained revenue growth (~21.8%) signals expanding demand and order intake across shipbuilding and repair. Persistent top-line expansion improves scale economics, supports reinvestment in yard capacity, and strengthens pricing leverage for multi‑year contracts in defense and commercial markets.

Healthy Operating Margins

Robust gross and EBIT margins reflect effective cost control and operational efficiency in complex, capital‑intensive builds. Durable margins suggest pricing power on specialized contracts and the ability to absorb input cost volatility, underpinning sustainable operating profitability over business cycles.

Strong Balance Sheet / Low Leverage

A strong equity base and low leverage provide resilience to cyclical downturns and capacity to fund large, multi‑year shipbuilding projects. This financial flexibility supports bidding for defense contracts, absorbs project timing mismatches, and reduces refinancing and solvency risk over the medium term.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating cash flow and negative free cash flow indicate weak cash conversion despite reported profitability. Structurally poor cash generation can constrain capex and working capital for ship builds, increase reliance on customer advances or external funding, and limit strategic investments.

Earnings Pressure

Negative EPS growth (~-9%) and a slight dip in net margin point to bottom‑line pressure despite revenue gains. Continued earnings erosion would reduce retained earnings available for reinvestment and dividends, heightening sensitivity to cost overruns and contract execution risks on large projects.

Conservative Cash Deployment

Large cash buffers relative to assets indicate conservative capital allocation. While lowering short‑term risk, under-deployed cash can result in lower long‑term returns and slower capacity expansion. This may delay investments in yard upgrades, technology, or partnerships critical for competitive positioning.

Cochin Shipyard Limited Business Overview & Revenue Model

Company Description

Cochin Shipyard Limited engages in the shipbuilding and repair of ships/offshore structures in India. Its shipbuilding operations include offering tankers, product carriers, bulk carriers, passenger vessels, high bollard pull tugs, and air defence ships. It also undertakes upgradation of mobile offshore drilling units of Oil and Natural Gas Corporation Ltd; maintenance and repair of aircraft carriers of the Indian Navy; and repair and maintenance of tankers and bulk carriers of Shipping Corporation of India. In addition, the company provides marine engineering training services. Cochin Shipyard Limited was founded in 1969 and is based in Ernakulam, India.

How the Company Makes Money

Cochin Shipyard Limited primarily earns revenue through two operating streams: shipbuilding and ship repair. (1) Shipbuilding revenue is generated by undertaking contracts to design/build and deliver new vessels for customers; earnings are typically recognized based on contract execution milestones/progress and final delivery/acceptance terms, with cash inflows supported by customer advances and stage payments as specified in each contract. (2) Ship repair revenue is earned by providing docking, maintenance, overhaul, refit, and life-extension/upgrade services to vessels (including commercial ships and government/defence platforms), where billing is driven by the scope of work performed, time in dock/yard, materials and spares consumed, and any additional work orders raised during execution. Beyond these core streams, the company also generates income from allied marine engineering and fabrication/industrial services that leverage its yard infrastructure and technical capabilities; however, any further segmentation detail not publicly specified is null. Significant factors that influence earnings include the order book for newbuilds, utilization of dock/berth capacity in repair operations, contract pricing and execution efficiency, and the mix of defence/government versus commercial work; specific partnership details not explicitly disclosed are null.

Cochin Shipyard Limited Financial Statement Overview

Summary

Cochin Shipyard Limited demonstrates strong revenue growth and operational efficiency, with a solid equity base and low leverage. However, persistent negative cash flow from operations is a concern that needs attention to ensure sustained growth and financial health.

Income Statement

Cochin Shipyard Limited has demonstrated strong revenue growth, with a significant increase from 2024 to 2025, indicating robust sales expansion. The gross profit margin and EBIT margin are healthy, reflecting effective cost management and operational efficiency. However, the net profit margin showed a slight decline in 2025 compared to 2024, suggesting some pressure on profitability in recent periods.

Balance Sheet

The company maintains a solid equity base with a favorable equity ratio, indicating strong financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity has shown improvement, driven by increased net income. However, the substantial cash reserves relative to total assets suggest conservative cash management, which could be optimized for growth investments.

Cash Flow

There is a concerning trend of negative operating cash flow, which may affect long-term financial flexibility. The free cash flow remains negative, although there was a slight improvement in 2025. The cash flow to net income ratio indicates inefficiencies in translating earnings into cash flow, which could pose a risk if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.93B	48.20B	38.31B	23.65B	31.91B	28.19B
Gross Profit	17.07B	17.70B	15.03B	7.75B	11.65B	11.99B
EBITDA	10.63B	10.27B	8.91B	3.40B	7.31B	7.83B
Net Income	7.60B	8.27B	7.83B	3.05B	5.64B	6.09B
Balance Sheet
Total Assets	142.53B	133.99B	120.42B	100.21B	84.14B	75.19B
Cash, Cash Equivalents and Short-Term Investments	29.33B	4.02B	5.77B	47.92B	32.13B	7.36B
Total Debt	11.56B	5.60B	5.02B	5.87B	5.54B	5.40B
Total Liabilities	85.55B	78.20B	70.39B	55.93B	40.21B	34.86B
Stockholders Equity	56.97B	55.79B	50.03B	44.28B	43.93B	40.33B
Cash Flow
Free Cash Flow	-8.80B	-7.93B	-8.05B	15.45B	11.34B	3.60B
Operating Cash Flow	-7.09B	-2.97B	-1.72B	18.89B	13.97B	7.89B
Investing Cash Flow	1.30B	5.38B	4.81B	-353.19M	-4.72B	-5.22B
Financing Cash Flow	3.22B	-2.77B	-3.71B	-2.76B	-2.39B	-4.05B

Cochin Shipyard Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1630.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:COCHINSHIP, the sentiment is Negative. The current price of 1630.05 is above the 20-day moving average (MA) of 1449.50, above the 50-day MA of 1496.86, and below the 200-day MA of 1725.81, indicating a bearish trend. The MACD of -37.39 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:COCHINSHIP.

Cochin Shipyard Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEL	77 Outperform	₹3.15T	46.53	―	0.60%	16.58%	25.45%
HAL	71 Outperform	₹2.54T	39.31	―	0.90%	3.05%	-0.57%
GRSE	71 Outperform	₹263.17B	40.98	―	0.80%	43.86%	60.18%
MAZDOCK	68 Neutral	₹952.74B	28.54	―	0.47%	12.22%	-9.22%
COCHINSHIP	65 Neutral	₹358.15B	73.64	―	0.59%	19.62%	-12.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDL	60 Neutral	₹460.38B	184.29	―	0.33%	82.69%	18.17%

Cochin Shipyard Limited Corporate Events

Cochin Shipyard Announces Second Interim Dividend and Outlines TDS Rules for Payout

Cochin Shipyard Limited’s board has declared a second interim dividend of ₹3.50 per equity share (70% of the ₹5 face value) for the financial year 2025-26, payable by February 26, 2026 to shareholders on record as of February 3, 2026. In line with post-2020 tax rules, the company has outlined how tax will be deducted at source on this dividend, specifying that resident individuals receiving up to ₹10,000 in dividends in FY 2025-26 will not face TDS, and that eligible shareholders can avoid TDS by submitting Form 15G or 15H, while others will generally see a 10% TDS under Section 194 of the Income Tax Act, signalling a need for investors to manage documentation and tax implications around this payout.

Cochin Shipyard Confirms All Shares Fully in Demat Form, No New Demat Requests in Q3 FY26

Cochin Shipyard Limited has submitted a confirmation certificate to the stock exchanges in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, provided by its registrar and transfer agent MUFG Intime India Private Limited. The registrar confirmed that no dematerialisation requests were received during the quarter ended 31 December 2025 and that all of the company’s securities are already in dematerialised form, meaning no physical share certificates were issued, mutilated or cancelled, underscoring the company’s alignment with India’s fully demat market framework and reinforcing comfort for shareholders regarding securities handling and regulatory compliance.

Cochin Shipyard to Close Trading Window Ahead of Q3 FY26 Results

Cochin Shipyard Limited has announced that its trading window for dealing in the company’s securities will be closed for all designated persons from 1 January 2026 until 48 hours after the public announcement of its financial results for the quarter ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal insider trading code. The move underscores the company’s adherence to regulatory norms on preventing insider trading, reinforcing governance standards and providing additional assurance to investors and market participants about the integrity of its financial disclosure process.