Cochin Shipyard surges 6% on contract win worth Rs 3,000 crore

The company has signed the Phase-III contract for construction of the indigenous aircraft carrier for Indian Navy.

Shares of Cochin Shipyard hit a 52-week high of Rs 412, up 6 per cent on the BSE on Friday after the company won contract worth Rs 3,000 crore. The stock of the state-owned shipping company was trading at its highest level since September 26, 2018 on the BSE.

In a regulatory filing, Cochin Shipyard said on Thursday that it has signed the Phase-III contract for construction of the indigenous aircraft carrier for Indian Navy. The contract value is above Rs 3,000 crore.

The phase-III contract covers the operational and harbour acceptance trials of various equipments and systems installed onboard and also the sea trials of the carrier. The contract also covers some activities which are to be undertaken post delivery of the vessel including support during weapon and aviation trials, the company said.

On Wednesday, the company in its release said that the company signed contract with Kochi Water Metro Project (KMRL) for design and construction of 23 hybrid-electric passenger ferries. The value of the contract is Rs 175.70 crore.

In the past two weeks, Cochin Shipyard has soared 25 per cent, as compared to a 2 per cent rise in the S&P BSE Sensex.

At 10:33 am, the stock was trading 5 per cent higher at Rs 409, against 0.09 per cent decline in the benchmark index. A combined 1,84,349 equity shares changed hands on the counter on the NSE and BSE so far.