Anand Rathi Sets Bullish Target for Cochin Shipyard
Brokerage firm Anand Rathi has expressed strong confidence in Cochin Shipyard Ltd, establishing a target price of Rs 2,200. This projection indicates a potential upside of 22.22% from the current level of Rs 1,800. The firm recommends purchasing shares within the range of Rs 1,820 to Rs 1,780, with a stop-loss set at Rs 1,600 and a suggested investment horizon of 3 to 6 months.
Technical Analysis and Market Position
Anand Rathi’s technical analysis reveals that Cochin Shipyard has found solid support near its 200-day exponential and simple moving averages, forming a triple bottom around the Rs 1,600 mark. The brokerage noted that the stock has recently broken out of a bullish inverse head and shoulders pattern, signaling a positive trend. They advise traders to accumulate shares within the Rs 1,820 to Rs 1,780 range, aiming for the target price of Rs 2,200.
Beyond technical indicators, Anand Rathi emphasized the company’s strong fundamentals and promising order visibility. Cochin Shipyard is a prominent player in ship construction, repairs, and upgrades, having expanded its capabilities from bulk carriers to advanced vessels, including Platform Supply Vessels and Anchor Handling Tug Supply Vessels. Currently, the defense public sector unit boasts a robust order book valued at Rs 21,100 crore, which encompasses Rs 1,500 crore in repair orders and Rs 19,600 crore in shipbuilding contracts across 75 vessels.
Future Growth Prospects and Strategic Partnerships
The outlook for Cochin Shipyard is further bolstered by new business inflows, including recent orders for two 70-ton bollard pull tugs and a luxury river cruise vessel. The company has also entered into strategic memorandums of understanding (MoUs) with Drydocks World UAE and HD KSOE South Korea, enhancing its international collaborations and market reach.
Looking ahead, Cochin Shipyard has projected a revenue growth of 14-15% for FY26, along with an anticipated profit after tax (PAT) margin of around 15%. These targets align with the Indian government’s long-term initiatives under the ‘Maritime India Vision 2030’ and ‘Maritime Amrit Kaal Vision 2047,’ indicating a strong commitment to growth and innovation in the maritime sector.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
