Cochin Shipyard share price jumps over 7% on bagging ₹5,000-crore contract for Indian navy

Cochin Shipyard share price jumped over 7% in early trade on Tuesday after the company was declared L1 bidder by the Ministry of Defence for the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The PSU defence stock surged as much as 7.27% to ₹1,575.00 apiece on the BSE.

The rally in Cochin Shipyard share price today comes after four consecutive sessions of losses. The gains in the PSU defence stock were also supported by strong trading volumes.

Around 22 lakh equity shares of Cochin Shipyard changed hands on stock exchanges on February 17, significantly higher than its one week average trading volume of 5 lakh shares, and one month average volumes of 10 lakh shares.

Cochin Shipyard said that the Ministry of Defence has declared the company as L1 in the tender floated by the Ministry of Defence for construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The estimated total order value is around ₹5,000 crore.

“The final announcement of the contract will be subject to the satisfactory completion of necessary formalities in this regard, which will be updated in due course,” Cochin Shipyard said in a regulatory filing on February 16.

Technical View

Cochin Shipyard share price has printed a prominent hammer on the monthly chart, signaling demand absorption after a sharp decline and hinting at a potential trend reversal, noted Anshul Jain, Head of Research at Lakshmishree Investments.

“The candle’s high near ₹1,662 now becomes a critical reference level. With supportive news flow and improving sentiment, Cochin Shipyard stock price could attempt a recovery toward this zone, testing the upper boundary of the reversal signal. A decisive breakout above ₹1,662 would confirm bullish follow-through and open the door for a stronger upward phase,” said Jain.

However, he added that the supply cluster between ₹1,640 – ₹1,662 remains formidable; rejection from this band would indicate lingering distribution and could trigger a fresh downswing.

“Risk–reward hinges on price behavior at this resistance, making it the key inflection point for directional conviction,” said Jain.

Ruchit Jain, Head, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services noted that Cochin Shipyard share price has seen a consolidation phase since the last few weeks and hence, the near term trend remains sideways.

“The immediate support is placed around ₹1,400 while the 200 DEMA around ₹1,650 is the hurdle. A breakout beyond this range will only lead to the next directional move,” said Jain.

Cochin Shipyard Share Price Performance

Cochin Shipyard share price has fallen 10% in three months and has declined 8% in six months. The defence PSU stock has rallied 27% in one year, and has delivered multibagger returns of 533% in three years and a staggering 762% over the past five years.

At 9:25 AM, Cochin Shipyard share price was trading 5.88% higher at ₹1,554.55 apiece on the BSE.

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