Cochin Shipyard Limited IPO – Company Profile, Price Band, IPO Listing and Closing Date, Analysis

Cochin Shipyard Limited – India’s largest public sector shipyard is planning to raise Rs. 1454 Crores via initial public offer (IPO).

Cochin Shipyard Limited – Company Profile

Incorporated in the year 1969, Cochin Shipyard Limited is one of the largest public sector shipyards in India in terms of dock capacity, according to CRISIL Report. The company operates a shipyard that provides (1) shipbuilding and (2) ships/offshore structures repair services.

Working Area

• Cochin Shipyard’s shipbuilding activities include the construction of vessels for clients operating in the defense and in the commercial sector shipping industry worldwide.
• In addition to shipbuilding and ship repair, the company also offers marine engineering training programs as well as offer additional courses, including six months practical training for marine engineering students from colleges affiliated to universities, fire prevention and firefighting, and elementary first aid training through its marine engineering training Institute; and chemical, mechanical, and nondestructive testing services of metals, welds, and alloys.

Recent and Future Activity

• Cochin Shipyard is in the process of constructing a new dock, a ‘stepped’ Dry Dock. This stepped dock will enable longer vessels to fill the length of the dock and wider, shorter vessels and rigs to be built or repaired at the wider part.
• The company is also in the process of setting up an International Ship Repair Facility, which includes setting up a ship lift and transfer system.
• In the last two decades, the company has built and delivered vessels across broad classifications including bulk carriers, tankers, Platform Supply Vessels, Anchor Handling Tug Supply vessels, barges, bollard pull tugs, passenger vessels, and Fast Patrol Vessels.
• The company is currently building India’s first Indigenous Aircraft Carrier for the Indian Navy. It has also grown its ship repair operations and is the only commercial shipyard to have undertaken repair work of Indian Navy’s aircraft carriers, the INS Viraat and INS Vikramaditya.

Company Promoters

Company’s Promoter is the President of India.

IPO Details – Issue Price, Minimum Bid and Other

IPO Opening, Closing & Listing Dates

Financial Performance

Revenues

The Company shows steady revenue growth in recent years. Topline has been increasing regularly for the last five years and jumped from INR 1474 crore in FY2012 to INR 2099 crore for the year ended March 2016.

Profits

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these years. Starting from INR 155 crore of profit in FY2012, the company’s earnings improved to INR 286 crore in FY2016.

Margin

The company’ profit margin ranging from 10% to 15% in these five years.

CONCLUSION –

Considering company’s valuation, financial parameters and the kind of services it offers, FinBlab recommends SUBSCRIBE ratings on Cochin Shipyard Limited IPO.

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