Here's why Cochin Shipyard shares were locked in the 5% upper limit today

The Cochin Shipyard scrip soared after the company announced that it has signed a contract of Rs 1,000 crore with the Defence Ministry for short refit and dry docking of a large Indian naval vessel

Cochin Shipyard share price: Shipbuilding company Cochin Shipyard shares were buzzing in trade on Monday, December 2, 2024. The shares were locked in the 5 per cent upper circuit at Rs 1,655.75 per share.

 

The northward move in the Cochin Shipyard scrip came after the company announced that it has signed a contract worth Rs 1,000 crore with the Ministry of Defence (MoD), Government of India, for short refit and dry docking of a large Indian naval vessel. 

 

In an exchange filing, Cochin Shipyard said, “We would like to inform you that Cochin Shipyard Limited (CSL) on November 30, 2024 has signed a contract with the Ministry of Defence (MoD), Government of India, for Short Refit and Dry Docking of a Large Indian Naval Vessel.”

 

The estimated contract value is above Rs 1,000 crore and the estimated duration for the project is around 5 months, Cochin Shipyard added. 

 

Last week, the scrip had hit an upper limit of 5 per cent after the company revealed that it entered into a Memorandum of Understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian market.

 

Cochin Shipyard, established in 1972, is among the leading players in vessel construction, repair, and refit services, including periodic upgrades and life extensions for ships. Famous for its expertise, CSL has built and repaired some of the largest ships for prestigious clients worldwide and has exported approximately 45 vessels internationally. The company’s experience spans from constructing bulk carriers to advanced technological vessels, including Platform Supply Vessels and Anchor Handling Tug Supply Vessels.

 

The market capitalisation of Cochin Shipyard is Rs 43,559.60 crore, according to BSE. The company falls under the BSE500 category.

 

The 52-week high of the Cochin Shipyard stock is Rs 2,977.10 per share while its 52-week low is Rs 577.88 per share.

 

At 10:10 AM, Cochin Shipyard share price continued to remain locked in the 5 per cent upper circuit at Rs 1,655.75 per share. By comparison, BSE Sensex was trading 0.10 per cent lower at 79,719.24 levels.