Cochin Shipyard buyback: Long-term investors should stay put, say analysts

Despite a fall of 26 per cent since its listing in August 2017 (30 per cent fall thus far in calendar year 2018), analysts remain bullish on this government-owned company from a long-term horizon.

The Rs 2 billion share buyback offer by state-run Cochin Shipyard opened Wednesday. The company plans to buy back 4.39 million shares, (constituting 3.23 per cent of the paid up equity share capital) at Rs 455 apiece. The buyback price is at around 20 per cent premium to the current market price of Rs 378 (as of Wednesday’s close) on the Bombay Stock Exchange (BSE). The offer closes on December 11.

Despite a fall of 26 per cent since its listing in August 2017 (30 per cent fall thus far in calendar year 2018), analysts remain bullish on this government-owned