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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 540678 | NSE: COCHINSHIP

Cochin Shipyard Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:23 am

Market Cap 44,580 Cr.
Current Price 1,695
High / Low2,979/436
Stock P/E50.4
Book Value 191
Dividend Yield0.58 %
ROCE21.6 %
ROE17.2 %
Face Value 5.00
PEG Ratio-37.40

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Cochin Shipyard Ltd

Competitors of Cochin Shipyard Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hariyana Ship Breakers Ltd 79.7 Cr. 129240/77.211.5 2350.00 %3.92 %2.22 % 10.0
Reliance Naval & Engineering Ltd 170 Cr. 2.30/ 2580.00 %%% 10.0
Mazagon Dock Shipbuilders Ltd 89,315 Cr. 4,4285,860/1,74240.2 2760.62 %50.6 %37.8 % 10.0
Cochin Shipyard Ltd 44,580 Cr. 1,6952,979/43650.4 1910.58 %21.6 %17.2 % 5.00
Industry Average44,688.33 Cr1,563.5834.03240.000.30%25.37%19.07%8.75

All Competitor Stocks of Cochin Shipyard Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7491,0803296969531,2114406836315774449541,021
Expenses431821307530811912406543477643362759710
Operating Profit3182592316614229934139154-6682195311
OPM %42%24%7%24%15%25%8%20%24%-11%18%20%30%
Other Income1569474264113576123131848856
Interest121612121212121212-2898
Depreciation1414141414141415149131515
Profit before tax308298441831813866517415158145258345
Tax %26%23%27%26%26%26%25%31%21%19%25%26%28%
Net Profit229230321361342844912011847109191248
EPS in Rs8.728.731.235.165.1110.801.864.554.501.804.167.269.43

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4061,6801,7981,5831,9902,0592,3552,9663,4222,8193,1902,3302,997
Expenses1,2081,3271,3811,4931,5981,6691,8902,3922,7082,0922,5552,0572,474
Operating Profit19935341790393390465574714727635273522
OPM %14%21%23%6%20%19%20%19%21%26%20%12%17%
Other Income67876177107154189227247194266268359
Interest13232019121212155057534223
Depreciation22192538373938344953545152
Profit before tax231397433110450493605751863811794448806
Tax %33%33%35%37%35%35%34%36%26%25%26%25%
Net Profit15526628269292322397481638610587334596
EPS in Rs6.8511.7512.433.0612.8814.1914.5918.2924.2423.1922.2912.7122.65
Dividend Payout %13%6%6%25%30%32%41%36%34%33%38%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)71.61%6.02%-75.53%323.19%10.27%23.29%21.16%32.64%-4.39%-3.77%-43.10%
Change in YoY Net Profit Growth (%)0.00%-65.60%-81.55%398.72%-312.91%13.02%-2.13%11.48%-37.03%0.62%-39.33%

Cochin Shipyard Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:4%
3 Years:9%
TTM:68%
Compounded Profit Growth
10 Years:11%
5 Years:11%
3 Years:10%
TTM:155%
Stock Price CAGR
10 Years:%
5 Years:59%
3 Years:109%
1 Year:228%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:13%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:52 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital113113113113113136132132132132132132
Reserves1,1121,3761,4411,7111,9153,1203,2013,6003,8464,2284,2924,894
Borrowings-0334123123123123123123532546567489
Other Liabilities1,1751,1641,2141,4021,1702,1031,7932,5542,8933,4134,9106,366
Total Liabilities2,4012,9872,8913,3493,3215,4825,2486,4097,4038,3189,90111,880
Fixed Assets240370370370371349375756756740716722
CWIP13881324541153417681,0621,2471,6032,189
Investments00000166065214262336355
Other Assets2,0222,6092,5082,9542,8975,0014,4724,8195,3716,0697,2458,614
Total Assets2,4012,9872,8913,3493,3215,4825,2486,4097,4038,3189,90111,880

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -25-58466340212632-4482536701,4152,046-173
Cash from Investing Activity -10315164765-1,3281,044-74-446-1,011-1,921478
Cash from Financing Activity -77271-235-32-113812-409-309-405-238-270-371
Net Cash Flow-205-29844455165116186-130-181166-145-65

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow199.00353.0083.00-33.00270.00267.00342.00451.00591.00195.0089.00-294.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days149244134835490483146505234
Inventory Days157177113817098706513065116215
Days Payable6277647459838485130376995
Cash Conversion Cycle24434518491661043410467899154
Working Capital Days2274-71-95-57-114-279-2-88-402-170
ROCE %38%30%7%26%25%22%22%25%21%18%9%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.86%72.86%72.86%72.86%72.86%72.86%72.86%72.86%72.86%72.86%72.86%72.86%
FIIs3.09%3.10%2.73%2.75%3.68%6.87%6.28%5.73%5.82%4.11%5.23%4.94%
DIIs4.54%4.11%4.29%4.37%4.96%3.87%3.78%3.21%2.24%2.20%2.45%2.50%
Public19.50%19.93%20.12%20.02%18.48%16.39%17.07%18.19%19.07%20.84%19.47%19.71%
No. of Shareholders1,67,7751,67,8101,71,0901,70,1001,64,5041,69,2571,69,2641,80,9792,66,4372,92,2123,96,3276,34,075

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF4,341,5631.04378.553,5442024-10-098008.4%
Canara Robeco Small Cap Fund974,1430.984.9353,5442024-10-091719.33%
Nippon India Nifty Smallcap 250 Index Fund53,5440.434.6753,5442024-10-090%
Motilal Oswal Nifty Smallcap 250 Index Fund28,8270.432.5153,5442024-10-09-46.16%
HDFC NIFTY Smallcap 250 ETF11,9410.431.0453,5442024-10-09-77.7%
HDFC Nifty Smallcap 250 Index Fund6,7040.430.5853,5442024-10-09-87.48%
Shriram Aggressive Hybrid Fund5,1090.970.4553,5442024-10-09-90.46%
Motilal Oswal Nifty 500 Index Fund3,2360.040.2853,5442024-10-09-93.96%
Shriram Flexi Cap Fund2,7760.290.2453,5442024-10-09-94.82%
Edelweiss Nifty Smallcap 250 Index Fund1,8770.430.1653,5442024-10-09-96.49%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)29.7723.1642.8746.2748.05
Diluted EPS (Rs.)29.7723.1642.8746.2748.05
Cash EPS (Rs.)32.6128.4048.1750.8251.77
Book Value[Excl.RevalReserv]/Share (Rs.)190.18336.60333.98306.63283.02
Book Value[Incl.RevalReserv]/Share (Rs.)190.18336.60333.98306.63283.02
Revenue From Operations / Share (Rs.)145.60179.76242.58214.30260.19
PBDIT / Share (Rs.)44.8135.0167.3168.9272.34
PBIT / Share (Rs.)41.9729.7762.0264.3768.62
PBT / Share (Rs.)40.7131.8158.2361.4465.20
Net Profit / Share (Rs.)29.7723.1642.8746.2748.05
NP After MI And SOA / Share (Rs.)29.7723.1642.8746.2748.05
PBDIT Margin (%)30.7719.4727.7432.1627.80
PBIT Margin (%)28.8216.5625.5630.0326.37
PBT Margin (%)27.9517.6924.0028.6625.06
Net Profit Margin (%)20.4412.8817.6721.5918.46
NP After MI And SOA Margin (%)20.4412.8817.6721.5918.46
Return on Networth / Equity (%)15.656.8812.8315.0916.97
Return on Capital Employeed (%)19.987.9916.4818.4821.23
Return On Assets (%)6.483.046.708.099.86
Long Term Debt / Equity (X)0.000.010.020.030.03
Total Debt / Equity (X)0.000.030.020.030.03
Asset Turnover Ratio (%)0.340.250.400.400.58
Current Ratio (X)1.321.391.681.722.05
Quick Ratio (X)1.171.321.591.571.91
Inventory Turnover Ratio (X)2.483.304.423.276.02
Dividend Payout Ratio (NP) (%)0.0076.6236.1560.5130.44
Dividend Payout Ratio (CP) (%)0.0062.5032.1755.0928.26
Earning Retention Ratio (%)0.0023.3863.8539.4969.56
Cash Earning Retention Ratio (%)0.0037.5067.8344.9171.74
Interest Coverage Ratio (X)35.4613.1518.7917.6921.18
Interest Coverage Ratio (Post Tax) (X)24.567.9313.0312.6315.07
Enterprise Value (Cr.)19093.091633.54776.962850.781403.73
EV / Net Operating Revenue (X)4.980.690.241.010.41
EV / EBITDA (X)16.203.550.873.141.48
MarketCap / Net Operating Revenue (X)5.992.651.211.751.02
Retention Ratios (%)0.0023.3763.8439.4869.55
Price / BV (X)4.581.410.881.220.93
Price / Net Operating Revenue (X)5.992.651.211.751.02
EarningsYield0.030.040.140.120.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cochin Shipyard Ltd as of October 11, 2024 is: ₹1,665.34

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Cochin Shipyard Ltd is Overvalued by 1.75% compared to the current share price ₹1,695.00

Intrinsic Value of Cochin Shipyard Ltd as of October 11, 2024 is: ₹1,642.90

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Cochin Shipyard Ltd is Overvalued by 3.07% compared to the current share price ₹1,695.00

Last 5 Year EPS CAGR: -1.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -61.75, which is a positive sign.
  3. The company has higher reserves (2,894.67 cr) compared to borrowings (267.17 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.77 cr) and profit (553.23 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 121.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Cochin Shipyard Ltd:
    1. Net Profit Margin: 20.44%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.98% (Industry Average ROCE: 25.37%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.65% (Industry Average ROE: 19.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 24.56
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.17
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 50.4 (Industry average Stock P/E: 34.03)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Cochin Shipyard Ltd. is a Public Limited Listed company incorporated on 29/03/1972 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L63032KL1972GOI002414 and registration number is 002414. Currently Company is involved in the business activities of Building of ships and boats. Company’s Total Operating Revenue is Rs. 3190.00 Cr. and Equity Capital is Rs. 131.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ship - Docks/Breaking/RepairsAdministrative Building, Ernakulam Kerala 682015secretary@cochinshipyard.in
http://www.cochinshipyard.in
Management
NamePosition Held
Mr. Madhu S NairChairman & Managing Director
Mr. Bejoy BhaskerDirector - Technical
Mr. Sreejith Katayamkot NarayananDirector - Operations
Mr. V J JoseDirector - Finance & CFO
Mr. Nahar Singh MaheshwariNon Official Independent Director
Mr. Ashok SharmaNon Official Independent Director
Mr. M VenkatesanNon Official Independent Director
Mr. Abhijit BiswasNon Official Independent Director
Mrs. Amrapali Prashant SalveNon Official Independent Director
Mr. Rajesh Kumar SinhaPart Time Official (Nominee) Director
Mr. Biju PrabhakarPart Time Official (Nominee) Director

FAQ

What is the latest fair value of Cochin Shipyard Ltd?

The latest fair value of Cochin Shipyard Ltd is ₹1665.34.

What is the Market Cap of Cochin Shipyard Ltd?

The Market Cap of Cochin Shipyard Ltd is 44,580 Cr..

What is the current Stock Price of Cochin Shipyard Ltd as on 11 October 2024?

The current stock price of Cochin Shipyard Ltd as on 11 October 2024 is ₹1,695.

What is the High / Low of Cochin Shipyard Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cochin Shipyard Ltd stocks is 2,979/436.

What is the Stock P/E of Cochin Shipyard Ltd?

The Stock P/E of Cochin Shipyard Ltd is 50.4.

What is the Book Value of Cochin Shipyard Ltd?

The Book Value of Cochin Shipyard Ltd is 191.

What is the Dividend Yield of Cochin Shipyard Ltd?

The Dividend Yield of Cochin Shipyard Ltd is 0.58 %.

What is the ROCE of Cochin Shipyard Ltd?

The ROCE of Cochin Shipyard Ltd is 21.6 %.

What is the ROE of Cochin Shipyard Ltd?

The ROE of Cochin Shipyard Ltd is 17.2 %.

What is the Face Value of Cochin Shipyard Ltd?

The Face Value of Cochin Shipyard Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Cochin Shipyard Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE