Shares of Cochin Shipyard rose 7% to Rs 473.65 on the BSE in intraday trade on Monday after the company said it had received an international order worth Rs 550 crore from Norway-based global logistics solutions provider Samskip Group.

The stock was up 4% at Rs 462.40 at 9:21 am, while the S&P BSE Sensex fell 0.9%.

Cochin Shipyard said it had secured orders from NAVSHUTTLE 1 AS and NAVSHUTTLE 2 AS, Lysaker Norway, part of the Netherlands-based Samskip Group, for the design and construction of a total of two zero-emission feeder containerships and an option for two more vessels.

The total project cost of the firm order is approximately Rs 550 crore, and the first vessel will be delivered within 28 months and the second within 34 months. These boats can carry ab. 365 Nos. of 45ft long high cube containers designed to serve a European market with high demand for sustainable shipping solutions.

The project is one of the world’s first zero-emission feeder container ships powered by hydrogen fuel cells and green hydrogen. It is an ambitious project under the Norwegian Government’s Green Grant Program to provide emission-free transport solutions by adopting sustainable and pioneering future technologies.

However, despite today’s stellar performance, Cochin Shipyard has underperformed the market over the past three months, falling 24%. In contrast, the S&P BSE Sensex fell 6%.

ICICI Securities believes that Cochin Shipyard is well-positioned among Indian shipbuilders to secure more export orders, given the company’s proven capabilities and track record of delivering high-end vessels in Western Europe.

This is Norway’s second order for Cochin Shipyard, following an order for two autonomous electric vessels from ASKO Maritime AS in July 2020 for delivery in June 2022.

The company is executing two other merchant marine export orders for European clients and has been exploring further business opportunities in Europe. With this contract, Cochin Shipyard’s order backlog is estimated at around Rs 20,500 crore (6.8 times TTM revenue), including major orders such as 6 next-generation missile ships and anti-submarine frigates for the Indian Navy, export orders and ship maintenance contracts.