This warship manufacturing company has received a big order, there is a chance to earn money in shares!
State-owned Cochin Shipyard has received a major order worth up to ₹500 crore from Danish company Savitzer. Under this deal, the company will manufacture advanced electric tugs. This news could prove to be a lifeline for its shares, which have been under pressure for some time. As soon as the market opens on Monday, the stock may see movement and a chance to make money.
Cochin Shipyard News: If you keep an eye on stocks in the defense and shipping sectors, Cochin Shipyard Limited should be on your radar.
On Saturday, this state-owned company made an announcement that could have a direct impact on its shares as soon as the market opens on Monday. The company has received a major contract from Europe, which market experts view as a promising opportunity for profit.
Received an order worth crores from a Danish company
Cochin Shipyard has officially announced that it has signed a major contract with Danish giant Svitzer. This deal is no small one. The company has classified it as a "significant order," meaning the contract is worth between ₹250 crore and ₹500 crore.
Under this agreement, Cochin Shipyard will build Advanced Electric Towing Vessels for Svitzer. Simply put, these will be state-of-the-art electric tugs.
According to the agreement, Cochin Shipyard will initially build four 26-meter-long, fully electric Transverse tugs. Significantly, the deal also includes the option to build four more such vessels in the future. This means that if performance is good, the order value could increase further.
Shares can become rockets
Cochin Shipyard's stock saw a slight rise at market close on Friday. It closed at ₹1,644, up 0.27%. However, looking at the graph over the past six months, the stock has fallen by nearly 30% from its peak.
In such a situation, this new order worth up to ₹500 crore could act as a support for the falling stock. Market analysts believe that this news could lead to significant buying on Monday. The company's market cap is ₹43,250 crore.
By when will these special ships be ready?
Cochin Shipyard stated that delivery of these vessels is targeted to begin by the end of 2027. These vessels will be part of Schweitzer's specialized "Sustainable Towage" program. In a statement to the exchange, the company clarified that these tugs will be the "Transverse 2600E" model, with a capacity of 70 tons of bollard pull.
Dividend bonus for investors
Not only did the order go through, the company also recently gifted its shareholders with a dividend. The company's board announced an interim dividend of Rs 4 per share for the fiscal year 2025-26.
Investors who held shares as of the record date (November 18th) will benefit from this dividend. The company has stated that the dividend will be paid by December 11th.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.