Cochin Shipyard: A reasonable play on the defence segment

A healthy order book and improving profitability and returns ratios make the pricing attractive

The question that many investors have with respect to the Cochin Shipyard initial public offering is its timing. Justifiably, not much is in favour of the shipping or shipbuilding industry right now. However, the disconnect between the company’s name and its operations may offer comfort to investors. In fact, with growing defence spending and the sector becoming modernised indigenously, Cochin Shipyard’s initial public offering (IPO) may evoke the right amount of interest. From commencing operations as a ship repairer, Cochin Shipyard has radically transformed itself into a commercial shipyard to undertake repair work for the Navy’s aircraft carriers, making it