Cochin Shipyard Shares Surge 13% Post Q4 Results and Dividend Announcement

Cochin Shipyard Shares Surge 13% Post Q4 Results and Dividend Announcement

Cochin Shipyard Ltd. continued its impressive upward trajectory on Friday, with shares rising over 13% in intraday trading following the announcement of robust Q4 results and a dividend declaration.

Strong Financial Performance in Q4

Cochin Shipyard reported a 27% year-on-year (YoY) increase in consolidated net profit, reaching ₹287.18 crore in Q4 FY24, compared to ₹258.88 crore in the same period last year.

Key Highlights:

• Operating revenue jumped 36.7% YoY to ₹1,757.65 crore, up from ₹1,286.05 crore.

• EBITDA for the quarter stood at ₹266 crore, down 7.6% YoY.

• EBITDA margin contracted to 15.10%, from 22.40% a year earlier — a decline of 730 basis points.

Despite the margin compression, the strong revenue and profit growth have boosted investor confidence.

Dividend Announcement

The board of Cochin Shipyard also recommended a final dividend of ₹2.25 per equity share (face value of ₹5) for FY24–25. The payout is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Market Reaction

Cochin Shipyard’s share price opened at ₹1,858 on the BSE, up approximately 2.5% from Thursday’s close of ₹1,812.30. During intraday trade, the stock surged further to touch ₹2,055, reflecting over 13% gains.

This spike extends an already strong performance — the stock has climbed over 40% in the last month alone, supported by positive sentiment in defence-related stocks amid regional tensions.

Defence Sector in Focus

The India-Pakistan conflict and Operation Sindoor have rekindled investor interest in defence sector stocks. As a key player in shipbuilding and naval projects, Cochin Shipyard stands to benefit from heightened defence spending and strategic orders.

Notably, the stock has delivered more than 1500% returns over the last five years, firmly establishing itself as a multibagger in the Indian equity market.

Final Thoughts

Cochin Shipyard’s Q4 results, backed by strong revenue growth and a dividend proposal, have further strengthened its bullish momentum. While margin pressures persist, the long-term outlook remains positive due to its strategic role in India’s defence ecosystem.

As always, investors are encouraged to consult with certified financial advisors before making any investment decisions.