Cochin Shipyard Stock Soars After Defence Contract Win
Cochin Shipyard’s stock surged by 4.39% on Tuesday following the announcement that the company has emerged as the lowest bidder for a significant contract from the Ministry of Defence. Valued at Rs 5,000 crore, this contract marks a pivotal moment for the shipbuilding firm, rekindling investor interest after a four-day decline in share prices. As of noon, shares were trading at approximately Rs 1,532.60, having peaked at Rs 1,575 earlier in the day.
Major Defence Contract Secured
The Ministry of Defence has officially declared Cochin Shipyard Limited (CSL) as the L1 bidder for the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. This announcement was made during a meeting at the Ministry in New Delhi, where CSL confirmed its successful bid. The estimated total value of the contract is around Rs 5,000 crore, a figure that significantly exceeds the company’s revenue for the last quarter, which was reported at Rs 1,165.37 crore.
CSL’s stock had experienced a downturn prior to this announcement, closing at Rs 1,468.20 on Monday. However, the news of the contract win has revitalized market confidence, leading to a notable increase in share prices. The company emphasized that the finalization of the contract is contingent upon the successful completion of necessary formalities, which will be communicated in due course.
