Defence orders propel Cochin Shipyard to new highs

Share price surges 11% as firm emerges as lowest bidder for Rs 5,400 cr order to build anti-submarine vessels for Indian Navy

In a capital-intensive industry, the trend in order inflow and hopes of future flows are among key drivers of market sentiment, and it was no different for India's largest ship maker, Cochin Shipyard. Its share price surged nearly 11 per cent on Tuesday as the company emerged as the lowest bidder for a Rs 5,400 crore order to build eight anti-submarine warfare, shallow-water vessels, for supply to the Indian Navy. Since these vessels are to be delivered over the next five years, revenue visibility improves significantly. The order also strengthens faith on the already strong prospects of the company, which