Cochin Shipyard Limited shares rose more than 7 percent on Tuesday, 17 February, after the company was declared the lowest bidder in a Ministry of Defence tender estimated at approximately Rs 5,000 crore. On the BSE, the stock advanced 7.1 percent during intraday trade to Rs 1,574.5 per share.
The company informed that it has been declared the L1 bidder in a tender floated by the Ministry of Defence for the construction of five next-generation survey vessels for the Indian Navy. The estimated total value of the project is about Rs 5,000 crore. The company clarified that the final contract will be awarded only after completion of all necessary formalities.
Cochin Shipyard also stated that none of its promoters or promoter group entities has any interest in the institution that issued the order.
Prior to the announcement, the stock had declined for four consecutive sessions. Following the development, the downward trend was halted and trading activity increased. According to Bloomberg data, trading volumes were approximately 8.5 times higher than usual levels.
Despite the rally on Tuesday, the stock remains below its 52-week high of Rs 2,547. At current levels, the share is trading about 42 percent below its 52-week high. The 52-week low stands at Rs 1,180.
In terms of returns, the stock has been largely flat over the past one month. It has declined about 10 percent over three months and approximately 8.67 percent over six months. Over a one-year period, the stock has delivered returns of about 27 percent. Over two years, returns stand at 84.30 percent, and over three years, approximately 531 percent.
The company’s market capitalisation on the BSE is approximately Rs 40,653 crore.
