Shares of Cochin Shipyard fell over 8.5% to the lowest level in more than a month at Rs 1,387 apiece on September 11. The stock fell after the company's management indicated lower earnings before interest, tax, depreciation, and amortisation margin over the next two years.
Cochin Shipyard is aiming for an EBITDA margin of 14% for the next two financial years, the company's management said in an analyst conference call Thursday. This indicates a fall of over two percentage points from the 16.2% EBITDA margin in the financial year 2025-26 (Apr-Mar).
The management expects ship-repair revenue to scale to around ₹2,500 crore over the next three years, supported by
higher utilisation and increasing repair opportunities. It also expects to see 12-15% revenue from the current order book in the next two years, according to the management. Currently, the company has an unexecuted order book of Rs 22,000 crore.
ICICI Direct Research downgraded the stock to 'Hold' from 'Buy' as the brokerage expects company's margins to moderate.