Shares of Cochin Shipyard Skyrocketed 9% on 14 May after the company announced receiving a significant order from a European Client.
In its regulatory filing, the company had declared that it had won a sizable order for the design and construction of a hybrid service operation vessel (Hybrid SOV), with the possibility of constructing two more of these boats, from a client in Europe. According to CSL, orders classified as “large” are those worth between Rs 500 crore and Rs 1,000 crore.
The ship has hybrid battery systems installed to improve energy efficiency and reduce carbon emissions, according to CSL’s exchange report. The ship is designed to fulfil the needs of the offshore wind farm industry in Europe, where there is a sizable market for renewable energy sources in terms of operation, maintenance, and servicing. It is projected that the project will be completed by the end of 2026.
This was before the master shipyard repair agreement (MSRA), a non-financial contract, was signed by CSL and the US Navy on 4 April. This will facilitate the repairs of US Navy ships under military sealift command in CSL.
As of 31 December 2024, the company’s total order book is Rs 21,400 crore. The business claims that shipbuilding orders worth around Rs 9,000 crore are currently pending. Regarding the other project proposals, the firm states that roughly Rs 84,000 crore have been requested in request for proposals (RFPs).
Given the range of legislative initiatives that the Indian government has lately put in place to encourage and assist “Atmanirbharata,” the outlook for building warships is generally extremely favourable.
The active procurement program of the Indian Coast Guard and Indian Navy, which is very positive for Indian shipbuilders and the overall ecosystem, keeps the military shipbuilding sector hopeful. Analysts predict that the Ministry of Defence (MoD) will soon release more RFPs. The MoD has released several Requests for Proposals (RFPs) for different shipbuilding projects during the course of the previous year.
At 12:35 pm, the shares of Cochin Shipyard were trading 9.10% higher at Rs 1,304 on NSE.
