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Business News/ Markets / Stock Markets/  Cochin Shipyard share price rises over 3%; Kotak upgrades the stock after Q2 result
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Cochin Shipyard share price rises over 3%; Kotak upgrades the stock after Q2 result

Cochin Shipyard share price has seen robust gains in the last few months. The stock hit its 52-week low of ₹411 on March 27 this year. As of the previous session's close, the stock is up 154 per cent from its 52-week low level.

After the Q2 earnings, Kotak Institutional Equities upgraded the stock to a 'reduce' from a 'sell' with an increased target price of ₹1,030 from ₹990 earlier. Premium
After the Q2 earnings, Kotak Institutional Equities upgraded the stock to a 'reduce' from a 'sell' with an increased target price of 1,030 from 990 earlier.

Cochin Shipyard share price rose over 3 per cent in morning trade on BSE on Wednesday, November 8, looking set to extend the gains into the third consecutive session, a day after the company reported its September quarter scorecard.

During market hours on Tuesday, November 7, Cochin Shipyard reported a 61 per cent year-on-year (YoY) jump in Q2FY24 consolidated net profit at 181.53 crore. In the same quarter last year, the company's net profit was 112.79 crore.

Revenue from operations for the quarter rose 48 per cent YoY to 1,011.72 crore from 683.18 crore in the corresponding quarter last year.

Besides, the board of directors recommended an interim dividend of 8 per equity share of face value of 10.

Following the Q2 results announcement, the stock closed 3.69 per cent higher at 1,042 on BSE on November 7.

On November 8, the stock opened at 1,065 against the previous close of 1,042 and rose 3.05 per cent to touch the intraday high of 1,073.80 in trade so far. The stock, however, cooled off later and traded 1.16 per cent higher at 1,054.05 around 11:25 am.

Cochin Shipyard share price has seen robust gains in the last few months. The stock hit its 52-week low of 411 on March 27 this year. As of the previous session's close, the stock is up 154 per cent from its 52-week low level.

Also Read: HPCL share price jumps 24% in nine days; check out key reasons behind the rally

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Kotak upgrades the stock

After the Q2 earnings, Kotak Institutional Equities upgraded the stock to a 'reduce' from a 'sell' with an increased target price of 1,030 from 990 earlier.

"Cochin Shipyard reported an all-around beat, as robust execution across shipbuilding and ship repair was aided by strong margin performance. It remains on track to achieve its guidance of 64 per cent top-line growth in FY24. While margins have a high variation across quarters, H1FY24 EBITDA margins came in at 19.8 per cent, significantly ahead of the guided range of 14-15 per cent," said Kotak.

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The brokerage firm has raised its FY24-26 estimates due to higher margins.

"We raise our FY24-26 estimates by 10 per cent/3 per cent/4 per cent, led largely by an increase in our margin estimates (we move closer to the high-end of the guided range of 14-15 per cent) and adjusted for higher other income. As a result, our fair value increases to 1,030 from 990. We upgrade the stock to 'reduce' from 'sell' after a 20 per cent correction from its recent high," said Kotak.

Also Read: Alkem Laboratories share price rallies over 11% in two days after Q2 results beat estimates; brokerages raise target

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

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Published: 08 Nov 2023, 11:46 AM IST
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