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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 540678 | NSE: COCHINSHIP

Fundamental Analysis of Cochin Shipyard Ltd

Basic Stock Data

Last Updated: May 22, 2024, 7:21 pm

Market Cap 43,082 Cr.
Current Price 1,633
High / Low1,709/234
Stock P/E78.7
Book Value 179
Dividend Yield0.52 %
ROCE8.66 %
ROE6.57 %
Face Value 5.00
PEG Ratio-58.39

Data Source: screener.in

Competitors of Cochin Shipyard Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Naval & Engineering Ltd 170 Cr. 2.302.78/2.04 2580.00 %%% 10.0
Mazagon Dock Shipbuilders Ltd 58,056 Cr. 2,8782,978/74738.5 2370.55 %38.2 %28.6 % 10.0
Industry Average29,113.00 Cr1,440.1519.25247.500.28%19.10%14.30%10.00

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: May 15, 2024, 7:44 am

Quarterly Chart

Cochin Shipyard Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4061,6801,7981,5831,9902,0592,3552,9663,4222,8193,1902,3302,606
Expenses1,2081,3271,3811,4931,5981,6691,8902,3922,7082,0922,5552,0572,241
Operating Profit19935341790393390465574714727635273365
OPM %14%21%23%6%20%19%20%19%21%26%20%12%14%
Other Income67876177107154189227247194266268326
Interest13232019121212155057534228
Depreciation22192538373938344953545151
Profit before tax231397433110450493605751863811794448612
Tax %33%33%35%37%35%35%34%36%26%25%26%25%
Net Profit15526628269292322397481638610587334466
EPS in Rs6.8511.7512.433.0612.8814.1914.5918.2924.2423.1922.2912.7117.72
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%

Growth

Compounded Sales Growth
10 Years:3%
5 Years:0%
3 Years:-12%
TTM:1%
Compounded Profit Growth
10 Years:1%
5 Years:-6%
3 Years:-23%
TTM:-4%
Stock Price CAGR
10 Years:%
5 Years:50%
3 Years:95%
1 Year:422%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:12%
Last Year:7%

Last Updated: May 15, 2024, 7:44 am

Cochin Shipyard Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital113113113113113113136132132132132132132
Reserves8651,1121,3761,4411,7111,9153,1203,2013,6003,8464,2284,2924,583
Preference Capital3900000000000
Borrowings00334123123123123123123532546567583
Other Liabilities1,6311,1751,1641,2141,4021,1702,1031,7932,5542,8933,4134,9195,436
Total Liabilities2,6092,4012,9872,8913,3493,3215,4825,2486,4097,4038,3189,90910,733
Fixed Assets186240370370370371349375756756740716725
CWIP6413881324541153417681,0621,2471,6031,961
Investments000000166065214262336335
Other Assets2,3602,0222,6092,5082,9542,8975,0014,4724,8195,3716,0697,2547,713
Total Assets2,6092,4012,9872,8913,3493,3215,4825,2486,4097,4038,3189,90910,733

Reserves and Borrowings Chart

Cochin Shipyard Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 310-25-58466340212632-4482536701,4152,051
Cash from Investing Activity 10-10315164765-1,3281,044-74-446-1,011-226
Cash from Financing Activity -86-77271-235-32-113812-409-309-405-238-272
Net Cash Flow235-205-29844455165116186-130-1811661,553

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow160.00353.00417.0090.00393.00390.00465.00574.00714.00727.00635.00273.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days2031492441348354904831465052
Inventory Days192157177113817098706513065116
Days Payable16362776474598384851303769
Cash Conversion Cycle23324434518491661043410467899
Working Capital Days-472274-71-95-57-114-279-2-88-402
ROCE %25%38%30%7%26%25%22%22%25%21%18%9%

Financial Efficiency Indicators Chart

Cochin Shipyard Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs3.02%3.09%3.10%2.73%2.75%3.68%6.87%6.28%5.73%5.82%4.11%5.23%
DIIs5.94%4.54%4.11%4.29%4.37%4.96%3.87%3.78%3.21%2.24%2.20%2.45%
Public18.18%19.50%19.93%20.12%20.02%18.48%16.39%17.07%18.19%19.07%20.84%19.47%
No. of Shareholders1,64,2991,67,7751,67,8101,71,0901,70,1001,64,5041,69,2571,69,2641,80,9792,66,4372,92,2123,96,327

Shareholding Pattern Chart

No. of Shareholders

Cochin Shipyard Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India CPSE ETF23101631250.71
Samco Active Momentum Fund1056822.6611.47
Nippon India Nifty Smallcap 250 Index Fund202940.322.2
Motilal Oswal Nifty Smallcap 250 Index Fund127560.321.38
SBI Nifty Smallcap 250 Index Fund92690.321.01
ICICI Prudential Nifty Smallcap 250 Index Fund50310.320.55
HDFC NIFTY Smallcap 250 ETF22970.320.25
HDFC Nifty Smallcap 250 Index Fund17820.320.19
Motilal Oswal Nifty 500 Index Fund14270.030.15
Edelweiss Nifty Smallcap 250 Index Fund3940.310.04

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)23.1642.8746.2748.0535.47
Diluted EPS (Rs.)23.1642.8746.2748.0535.47
Cash EPS (Rs.)28.4048.1750.8251.7738.92
Book Value[Excl.RevalReserv]/Share (Rs.)336.60333.98306.63283.02253.45
Book Value[Incl.RevalReserv]/Share (Rs.)336.60333.98306.63283.02253.45
Revenue From Operations / Share (Rs.)179.76242.58214.30260.19225.19
PBDIT / Share (Rs.)35.0167.3168.9272.3460.51
PBIT / Share (Rs.)29.7762.0264.3768.6257.91
PBT / Share (Rs.)31.8158.2361.4465.2056.83
Net Profit / Share (Rs.)23.1642.8746.2748.0536.32
NP After MI And SOA / Share (Rs.)23.1642.8746.2748.0536.35
PBDIT Margin (%)19.4727.7432.1627.8026.87
PBIT Margin (%)16.5625.5630.0326.3725.71
PBT Margin (%)17.6924.0028.6625.0625.23
Net Profit Margin (%)12.8817.6721.5918.4616.12
NP After MI And SOA Margin (%)12.8817.6721.5918.4616.14
Return on Networth / Equity (%)6.8812.8315.0916.9714.36
Return on Capital Employeed (%)7.9916.4818.4821.2321.86
Return On Assets (%)3.046.708.099.869.11
Long Term Debt / Equity (X)0.010.020.030.030.03
Total Debt / Equity (X)0.030.020.030.030.03
Asset Turnover Ratio (%)0.250.400.400.580.55
Current Ratio (X)1.391.681.722.052.34
Quick Ratio (X)1.321.591.571.912.18
Inventory Turnover Ratio (X)3.304.423.276.025.02
Dividend Payout Ratio (NP) (%)76.6236.1560.5130.4434.11
Dividend Payout Ratio (CP) (%)62.5032.1755.0928.2631.83
Earning Retention Ratio (%)23.3863.8539.4969.5665.89
Cash Earning Retention Ratio (%)37.5067.8344.9171.7468.17
Interest Coverage Ratio (X)13.1518.7917.6921.1855.66
Interest Coverage Ratio (Post Tax) (X)7.9313.0312.6315.0734.41
Enterprise Value (Cr.)1633.54776.962850.781403.732733.07
EV / Net Operating Revenue (X)0.690.241.010.410.92
EV / EBITDA (X)3.550.873.141.483.43
MarketCap / Net Operating Revenue (X)2.651.211.751.021.75
Retention Ratios (%)23.3763.8439.4869.5565.88
Price / BV (X)1.410.881.220.931.56
Price / Net Operating Revenue (X)2.651.211.751.021.75
EarningsYield0.040.140.120.180.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹930.35

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.

Overvalued: 43.03% compared to the current price ₹1633

Intrinsic Value: ₹917.81

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 43.80% compared to the current price ₹1633

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 22.33%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -51.50, which is a positive sign.
  3. The company has higher reserves (2,714.62 cr) compared to borrowings (3.00 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 127.83, 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: 12.88%
      • 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: 7.99% (Industry Average ROCE: 19.1%)
      • 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%: 6.88% (Industry Average ROE: 14.3%)
      • 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): 7.93
      • 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: 1.32
      • 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: 78.7 (Industry average Stock P/E: 19.25)
      • 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: 0.03
      • 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
Mrs. Amrapali Prashant SalveNon Official Independent Director
Mr. Nahar Singh MaheshwariNon Official Independent Director
Mr. Ashok SharmaNon Official Independent Director
Mr. Prithviraj HarichandanNon Official Independent Director
Mr. M VenkatesanNon Official Independent Director
Mr. Abhijit BiswasNon 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 ₹930.35.

What is the Market Cap of Cochin Shipyard Ltd?

The Market Cap of Cochin Shipyard Ltd is 43,082 Cr..

What is the current Stock Price of Cochin Shipyard Ltd as on 22 May 2024?

The current stock price of Cochin Shipyard Ltd as on 22 May 2024 is ₹1,633.

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 ₹1,709/234.

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

The Stock P/E of Cochin Shipyard Ltd is 78.7.

What is the Book Value of Cochin Shipyard Ltd?

The Book Value of Cochin Shipyard Ltd is 179.

What is the Dividend Yield of Cochin Shipyard Ltd?

The Dividend Yield of Cochin Shipyard Ltd is 0.52 %.

What is the ROCE of Cochin Shipyard Ltd?

The ROCE of Cochin Shipyard Ltd is 8.66 %.

What is the ROE of Cochin Shipyard Ltd?

The ROE of Cochin Shipyard Ltd is 6.57 %.

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