Buy Cochin Shipyard, target price Rs 435: ICICI Direct
Cochin Shipyard Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 4707.83 Crore) operating in Defence sector.
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Promoters held 72.9 per cent stake in the company as of June 30, 2020, while FIIs held 1.8 per cent, DIIs 10.4 per cent and public and others 14.8 per cent.
ICICI Direct has given a buy rating to Cochin Shipyard with a target price of Rs 435. The share price moved up by 0.42 per cent from its previous close of Rs 358.50. The stock’s last traded price is Rs 360.
Cochin Shipyard Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 4707.83 Crore) operating in Defence sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 657.40 Crore, up 97.73 % from last quarter Sales of Rs 332.48 Crore and down -32.31 % from last year same quarter Sales of Rs 971.20 Crore Company reported net profit after tax of Rs 107.16 Crore in latest quarter.
Investment Rationale CSL continues to be one of the top-tier shipyards in the country with ample capacity, capability & the orderbook to support it. Recent tie-up with Fincantieri would help CSL gain technological inputs, design support & collaboration in high end/new gen defence vessels. Further, a solid order book of Rs 13862 crore, healthy cash balance of Rs 1400 crore (ex-advances) and robust order pipeline provides growth visibility for the company. A growing company, with high dividend pay-out & debt free b/s makes CSL an attractive bet trading at 7.4x FY22E EPS. It maintains BUY rating on the stock. It values CSL at 9x FY22E EPS and revise our target price to Rs 435. Promoter/FII Holdings Promoters held 72.9 per cent stake in the company as of June 30, 2020, while FIIs held 1.8 per cent, DIIs 10.4 per cent and public and others 14.8 per cent.
