Cochin Shipyard Stock Soars 7% After Securing Massive Rs 5,000 Crore Navy Deal

Shares of Cochin Shipyard Limited surged more than 7% in early trade on Tuesday after the company emerged as the lowest bidder for a ₹5,000-crore defence order. The contract pertains to the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The development was disclosed in an exchange filing after market hours on Monday. Investor sentiment strengthened following the announcement. The stock outperformed the broader market.

During the session, Cochin Shipyard’s stock climbed as much as 7.2% to ₹1,574.5 on the NSE, even as the benchmark Nifty 50 slipped about 0.1%. Trading activity also remained robust, with volumes rising sharply compared to recent averages. The company said it was declared L1 at a meeting held at the Ministry of Defence in New Delhi. The estimated order value stands at around ₹5,000 crore. The final contract award will follow completion of required formalities.

In its filing, the company noted that further updates would be shared once the procedural steps are concluded. The NGSV project is expected to strengthen India’s naval survey capabilities. Market participants viewed the development as a positive trigger for the PSU shipbuilder. The order, if finalised, would add significantly to the company’s order book. It also reinforces Cochin Shipyard’s positioning in defence shipbuilding.

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Over the past 12 months, the stock has gained about 27%, reflecting sustained investor interest. Technical indicators showed the relative strength index at 52, suggesting neutral momentum. The sharp jump in traded volume — nearly 12 times the company's 30-day average — indicated strong market participation. Analysts remain divided on the stock’s outlook. According to Bloomberg data, coverage is evenly split between bullish and bearish views.

Of the four analysts tracking the company, two have assigned a ‘buy’ rating, while two recommend ‘sell’. The average 12-month price target stands at ₹1,489, implying a potential downside of around 4% from current levels. Despite the mixed outlook, the latest defence order has provided near-term momentum to the shares. Investors will now watch for formal confirmation of the contract. Further movement in the stock is likely to hinge on execution visibility and order inflows.

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