Cochin Shipyard Ltd (CSL), one of the leading shipbuilding and repair yards in India, is another stock which has a similar background as Mazagon Dock Shipbuilders stock but it has also performed very well in the recent past. CSL is one of the largest facilities in India to build ships and it can build ships up to the capacity of 1.1 million tons. In the last six months, this stock has moved up 83% and 267% in one year. Thus creating a good value for the stock investors. This stock has mainly worked in the last year but its last month performance is stagnant. CSL stock enjoys great support at Rs 800 so it is constantly above it.
At the present level, CSL stock has high P/E and P/B. The ROE of the company is also decreasing. Institutions and FIIs are decreasing their holding in this stock thus putting some concern on the future trend of this stock. The point for Cochin Shipyard Ltd stock is that its revenue, net income and net profit margins are increasing. But when we consider the three years the company has had poor profit growth of -19% and the revenue growth of the company is also negative. On the positive side company is company is virtually debt-free and it has strong promoters holding.
All these things put CSL stock in a very high-risk category. Technically this stock is very bullish if we consider the yearly view but in the monthly view, it is stagnant. As discussed above Rs 800 is a good support for CSL but if it breaks it then it can go below Rs 800 too.
Current Price - 863.5
Risk - Very High
Future - Avoid for short term till it gives a clear signal
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