Tuesday, January 9, 2018

Buy Cochin Shipyard on declines for Long Term

Company Background :

Cochin Shipyard Limited is an India-based company. The Company is focused on providing cater to clients engaged in the defence sector in India and clients engaged in the commercial sector. In addition to shipbuilding and ship repair, the Company offers marine engineering training. The Company’s docks include ship repair dock and shipbuilding dock. 

Ship repair dock is enables to accommodate vessels with a maximum capacity of 125,000 DWT. In addition, ship repair dock offers a flexible range of products such as, tankers, product carriers, bulk carriers, passenger vessels, high bollard pull tugs, and air defence ship. Shipbuilding dock can accommodate vessels with a maximum capacity of 110,000 DWT. The Company has built a variety of vessels ranging from bulk carriers, tankers and passengers ships to offshore support vessels and port crafts.

Stock Performance:

Company came with IPO this year and we can track performance for last 3 months

The scrip has touched a low of 196 and a high of 282.  The delivery volumes have increased indicating increased interest by investors.  Large deals indicate fund buying at lower levels.

3 months - 4.42%
1 month - minus 3.54%
2 weeks - minus 2.54%
1 week - minus 2.3

Recommendation :

After touching 580 the scrips has been trending down and is now at an inflection point.

Buy and add to your long term portfolio.  In the short term 520 will be a good resistance point.  Scrip can reach  Target price of 625 in next 3 months and 750 for 12 months holding in view of the quarter on quarter improvement in financials

Raghav
Equity Analyst

Smart Investor 
Equity Research
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