Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Cochin Shipyard - Q2FY21 Result Update - ICICI Direct

Posted On: 2020-11-25 06:09:45 (Time Zone: Arizona, USA)


Cochin Shipyard (CSL) posted dismal Q2FY21 numbers as travel restrictions led to unavailability of service engineers for trials. Overall margins were diluted on account of below par execution leading to negative operating leverage. Revenue for the quarter was at Rs. 657.4 crore, down 32% YoY. Shipbuilding (SB) revenue fell 28.5% YoY to Rs. 563.5 crore while shiprepair (SR) segment contracted 14.3% YoY to Rs. 93.8 crore in the quarter. On a segmental profitability front, SB reported EBIT of Rs. 122.5 crore whereas SR clocked an EBIT of Rs. 25.68 crore. SB, SR segments contributed 85.7%, 14.3% to the topline, respectively. Although gross margins expanded ~335 bps largely on account of lower sub-contracting charges, negative operating leverage led EBIDTA margin to contract ~200 bps YoY. Hence, EBIDTA declined 39% YoY to Rs. 125.8 crore, down 39% YoY. Ensuing PAT was at Rs. 108.4 crore, down 48% YoY (vs. I-direct estimate of Rs. 144.5 crore). For H1FY21, CSL generated CFO of Rs. 1399.5 crore. High CFO generation was largely due to improved working capital.

Valuation & Outlook

CSL continues to be one of the top-tier shipyards in the country with ample capacity, capability & the orderbook to support it. Recent tie-up with Fincantieri would help CSL gain technological inputs, design support & collaboration in high end/new gen defence vessels. Further, a solid order book of Rs. 13862 crore, healthy cash balance of Rs. 1400 crore (ex-advances) and robust order pipeline provides growth visibility for the company. A growing company, with high dividend pay-out & debt free b/s makes CSL an attractive bet trading at 7.4x FY22E EPS. We maintain our BUY rating on the stock. We value CSL at 9x FY22E EPS and revise our target price to Rs. 435.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_CochinShipyard_Q2FY21.pdf

Shares of Cochin Shipyard Ltd was last trading in BSE at Rs.355.85 as compared to the previous close of Rs. 358.5. The total number of shares traded during the day was 24708 in over 1051 trades.

The stock hit an intraday high of Rs. 363.4 and intraday low of 352.7. The net turnover during the day was Rs. 8859210.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Maintain ADD on Mindtree - Into another operating orbit - HDFC Securities

NBFCs Q3FY21 Results Preview - Micro headwinds > Macro tailwinds - HDFC Securities

Mindtree - Margin beat and raise cycle seems to be over! - ICICI Securities

Shoppers Stop - Focusing on omni-channel growth - ICICI Securities

Piramal Enterprises - Strategic synergies, optional value to follow DHFL's buyout - ICICI Securities

Motherson Sumi Systems - Focus remains on growth and cost efficiency - ICICI Securities

Metropolis Healthcare - Acquires Hitech Diagnostics in South India - ICICI Securities

Nifty PE shifting orbits - ICICI Direct

Rallis India Ltd - Q3FY21 First Cut - ICICI Direct

Q3FY21 Company update - GTPL Hathway - ICICI Direct

Q3FY21 Result update - HDFC Bank - ICICI Direct

Q3FY21 Result Update - PVR Ltd - ICICI Direct

Q3FY21 Result update - HCL Technologies - ICICI Direct

Maintain BUY on HCL Technologies - Mode-2, 3 driven momentum - HDFC Securities

HDFC Bank Q3FY21 Results - Concall Highlights and Views of YES SECURITIES

HDFC Bank Q3 FY21 - 'Stellar Show' - Retain BUY and raise 12m PT to Rs1870 - YES Securities

IPO Review - Indian Railway Finance Corporation (IRFC) - ICICI Direct

HCL Technologies - Q3FY21 First Cut - ICICI Direct

Logistics Sector Update - Indian Railways - getting aggressive - HDFC Securities

Indigo Paints - IPO view - YES SECURITIES

Infosys - Near-term margins will likely come under pressure - ICICI Securities

CESC - 7% dividend yield + higher ESG rating - ICICI Securities

South Indian Bank - Unveils vision 2024; targets RoA / RoE of 1% / 13% by 2024 - ICICI Securities

Maintain BUY on Infosys - Growth certainty on explosive deal wins - HDFC Securities

Maintain ADD on Wipro - Growth acceleration - HDFC Securities

Consumer Durables - Q3FY21 Results Preview - HDFC Securities

Q3FY21 Company Update - Filatex India - ICICI Direct

Q3FY21 Result Update - Wipro Ltd - ICICI Direct

Q3FY21 Result Update - CESC - ICICI Direct

Monthly Inflation - December 2020 - ICICI Direct

Q3FY21 Result Update - Infosys - ICICI Direct

Banks Q3FY21 Results Preview - Scope for optimism beyond a tepid 3Q - HDFC Securities

Consumer Discretionary Companies - Q3FY21 Results Preview Report - HDFC Securities

Pharma Sector Update - Ample catalysts to sustain luster - HDFC Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on IIP data

Infosys - Q3FY21 First Cut - ICICI Direct

Wipro - Q3FY21 First Cut - ICICI Direct

HDFC Securities - Real Estate Q3FY21 Results Preview - Has COVID triggered a new cycle?

Industrials Q3FY21 Results Preview - Normalisation done, growth awaited - HDFC Securities

FMCG & Alco Bev - Q3FY21 Results Preview - HDFC Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on December 2020 CPI Data

Cement & Building Materials (Tiles) - Results Preview - Robust Performance on Improved Volume - Reliance Securities

Automobile & Auto Ancillary - Results Preview - Strong Results on Healthy Volume Performance in 3QFY21 - Reliance Securities

Q3FY21 Result Update - Tata Consultancy Services - ICICI Direct

Q3FY21 Result Preview - Real Estate & Infrastructure - ICICI Direct

Q3FY21 Result Update - Avenue Supermarts - ICICI Direct

Q3FY21 Result Preview - Metals & Mining - ICICI Direct

Insurance and Capital Markets Companies Q3FY21 Results Preview - Stronger earnings expected across sectors - HDFC Securities

Capri Global Capital - Getting back to normalcy - ICICI Securities

Avenue Supermarts - Fast recovery; there are speed breakers though - ICICI Securities



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020