Cochin Shipyard shares tank 24% in one month. Is a recovery on the horizon?
Cochin Shipyard (CSL) saw a sharp downturn of 24% from its all-time high of 2979 in just one month while also witnessing a decline of 8% in the last two weeks.
Recently, the stock also slipped below the key support of the 100-day Exponential Moving Average (DEMA), which displays a continued weakness.
“With the daily chart showing oversold conditions, there may be a potential for some recovery. The initial resistance is at the Rs 1,965 level, followed by a stronger hurdle at Rs 2,200,” said Ajit Mishra, SVP of Research at Religare Broking.
Mishra advises traders to avoid any aggressive long positions in the stock until there is an emergence of a clear reversal pattern and to maintain a stop loss at the level of Rs 1,800 for any ongoing trades.
Clarity on IAC-2 order also remains to be one of the key catalysts for CSL.
“We now expect CSL to execute the IAC order from FY2027 (2 years for approvals and order awarding). Beyond IAC, it has indicated a near-term pipeline of Rs 100 billion lower than previous quarters,” said Amit Agarwal, Senior Vice President of Fundamental Research at Kotak Securities.
The medium-term pipeline has also been lowered to Rs 50,000 crore (from an earlier Rs 84,000 crore) and out of the total Rs 3 tn pipeline identified by the Indian Navy, we only see landing platform dock (Rs200 bn) as a key project for CSL.
CSL’s FY2025 revenue guidance of 20-25% topline growth came in slightly
ahead of expectations and is driven mainly by the pick-up in the execution of defense contracts. However,
