Cochin Shipyard Shares Soar on Strategic Order Win
Cochin Shipyard Limited (CSL), a leading ‘Miniratna’ Public Sector Undertaking (PSU) in India, saw its share price hit a 5% upper circuit on the BSE on Friday, December 27, 2024, locking at ₹1,532.1 per share. This surge comes amidst a relatively flat market, with the benchmark BSE Sensex up by just 0.4%.
The rally in Cochin Shipyard’s stock follows the announcement by Adani Ports and Special Economic Zone Limited (APSEZ) of a ₹450 crore order for the construction of eight advanced harbor tugs.
Details of the Adani Ports Order
Adani Ports, India’s largest integrated transport utility, confirmed the procurement of eight state-of-the-art tugs from Cochin Shipyard. These vessels are expected to enhance port operations by offering efficient, reliable, and environmentally conscious services.
The tugs will be delivered between December 2026 and May 2028, as per the agreement. Highlighting the significance of this partnership, Ashwani Gupta, CEO of Adani Ports, stated:
“Our collaboration with Cochin Shipyard Ltd demonstrates our confidence in our nation’s PSUs. By leveraging local manufacturing capabilities, which are world-class, we aim to contribute to the ‘Make in India’ initiative while ensuring that our operations meet international standards of safety and efficiency.”
This marks yet another milestone in the collaboration between Adani Ports and Cochin Shipyard, underscoring their commitment to supporting India’s maritime and manufacturing capabilities.
A History of Collaboration
Adani Ports and Cochin Shipyard have a history of successful collaborations. Previously, CSL built two 62-tonne bollard pull Azimuthing Stern Drive (ASD) tugs for Adani’s Ocean Sparkle Ltd, which were delivered ahead of schedule and deployed at Paradeep Port and New Mangalore Port.
Additionally, Cochin Shipyard is currently constructing three more ASD tugs, bringing the total order to 13 tugs, aimed at modernizing Adani Ports’ fleet for greater efficiency and reliability.
Recent Achievements of Cochin Shipyard
Cochin Shipyard has been making waves with a string of prestigious contracts and partnerships:
- November 30, 2024: CSL signed a ₹1,000 crore contract with the Ministry of Defence (MoD) for the short refit and dry docking of a large Indian Naval vessel. The project, spanning five months, highlights CSL’s expertise in ship repair and maintenance.
- November 22, 2024: CSL entered into a Memorandum of Understanding (MOU) with Seatrium Letourneau USA, Inc. (SLET) to design and supply critical equipment for jack-up rigs targeting the Indian offshore market. This collaboration is expected to strengthen India’s mobile offshore drilling capabilities.
Market Performance and Milestones
Cochin Shipyard shares have been on a remarkable journey, previously hitting an all-time high of ₹2,977 per share on July 8, 2024. With a market capitalization of ₹40,306.6 crore, the company has cemented its position as a leader in ship construction, repairs, and engineering.
This latest rally further solidifies investor confidence, driven by strategic collaborations and a robust order book. As Cochin Shipyard continues to contribute to India’s maritime ambitions and the ‘Make in India’ initiative, its prospects remain bright in the evolving global shipping and defense landscape.
