BSE:540678

Stock Analysis Report

Executive Summary

Cochin Shipyard Limited engages in the shipbuilding and repair of ships/offshore structures in India.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Cochin Shipyard's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

BSE:540678

-3.8%

IN Machinery

-2.9%

IN Market


1 Year Return

-21.8%

BSE:540678

-30.7%

IN Machinery

-15.9%

IN Market

540678 outperformed the Machinery industry which returned -30.7% over the past year.

540678 underperformed the Market in India which returned -15.9% over the past year.


Share holder returns

540678IndustryMarket
7 Day-3.7%-3.8%-2.9%
30 Day-6.0%-12.2%-5.7%
90 Day-9.3%-21.4%-11.0%
1 Year-18.9%-21.8%-29.6%-30.7%-14.1%-15.9%
3 Yearn/a-7.6%-11.1%15.7%9.5%
5 Yearn/a31.4%24.1%33.2%20.5%

Price Volatility Vs. Market

How volatile is Cochin Shipyard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cochin Shipyard undervalued based on future cash flows and its price relative to the stock market?

9.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cochin Shipyard's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cochin Shipyard's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cochin Shipyard is good value based on earnings compared to the IN Machinery industry average.

Cochin Shipyard is good value based on earnings compared to the India market.


Price Based on Expected Growth

Cochin Shipyard earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Cochin Shipyard is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Cochin Shipyard expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cochin Shipyard's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).

Cochin Shipyard's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Cochin Shipyard's revenue growth is expected to exceed the India market average.

Cochin Shipyard's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Cochin Shipyard's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Cochin Shipyard is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Cochin Shipyard performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cochin Shipyard has delivered over 20% year on year earnings growth in the past 5 years.

Cochin Shipyard's 1-year earnings growth is less than its 5-year average (19.4% vs 20.5%)

Cochin Shipyard's earnings growth has exceeded the IN Machinery industry average in the past year (19.4% vs 13.3%).


Return on Equity

Cochin Shipyard has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cochin Shipyard used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Cochin Shipyard's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cochin Shipyard's financial position?


Financial Position Analysis

Cochin Shipyard is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cochin Shipyard's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cochin Shipyard's level of debt (3.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (24.6% vs 3.7% today).

Operating cash flow is negative therefore debt is not well covered.

Cochin Shipyard earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 33.5x debt.


Next Steps

Dividend

What is Cochin Shipyard's current dividend yield, its reliability and sustainability?

4.27%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cochin Shipyard's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Cochin Shipyard's dividend is above the markets top 25% of dividend payers in India (2.67%).

It is too early to tell whether Cochin Shipyard has stable dividend payments.

Cochin Shipyard only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Cochin Shipyard's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Madhu Nair (53yo)

3.6yrs

Tenure

₹7,301,962

Compensation

Mr. Madhu S. Nair has been Chairman and Managing Director of Cochin Shipyard Limited since January 01, 2016 and served as its Director of Technical from November 30, 2017 to March 2018. Mr. Nair served as  ...


CEO Compensation Analysis

Madhu's remuneration is lower than average for companies of similar size in India.

Madhu's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

The tenure for the Cochin Shipyard management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

54yo

Average Age

The average tenure for the Cochin Shipyard board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • D. Ranjan (59yo)

    CFO, Director of Finance & Director

    • Tenure: 0.0yrs
    • Compensation: ₹5.92m
  • N. V. Babu (57yo)

    Director of Operations & Director

    • Tenure: 3.3yrs
    • Compensation: ₹5.72m
  • Madhu Nair (53yo)

    Chairman & MD

    • Tenure: 3.6yrs
    • Compensation: ₹7.30m
  • K. Ramesh (57yo)

    Chief General Manager of Human Resource & Training

    • Tenure: 3.6yrs
  • V. Kala (50yo)

    GM of Internal Audit

    • Tenure: 0.0yrs
    • Compensation: ₹4.22m
  • Bejoy Bhasker (53yo)

    Technical Director & Director

    • Tenure: 1.3yrs
    • Compensation: ₹4.60m
  • K. Sreejith

    Chief General Manager of Ship Repair

    • Tenure: 0.6yrs
  • M. Murugaiah (57yo)

    Chief General Manager of Technical

    • Tenure: 0.0yrs
  • A. Subash

    Deputy GM & Chief Welfare Officer

    • Tenure: 1.8yrs
  • N. Sivaram

    Deputy General Manager of Marketing

    • Tenure: 2.4yrs

Board Members

  • Jiji Thomson

    Non Official Part Time Director

    • Tenure: 2.1yrs
    • Compensation: ₹120.00k
  • D. Ranjan (59yo)

    CFO, Director of Finance & Director

    • Tenure: 0.0yrs
    • Compensation: ₹5.92m
  • N. V. Babu (57yo)

    Director of Operations & Director

    • Tenure: 3.3yrs
    • Compensation: ₹5.72m
  • Madhu Nair (53yo)

    Chairman & MD

    • Tenure: 3.6yrs
    • Compensation: ₹7.30m
  • Bejoy Bhasker (53yo)

    Technical Director & Director

    • Tenure: 1.3yrs
    • Compensation: ₹4.60m
  • K. Jyothilal

    Part Time Official Nominee Director

    • Tenure: 1.3yrs
  • Pradipta Banerji

    Non Official Part Time Director

    • Tenure: 2.1yrs
    • Compensation: ₹105.00k
  • Nanda Puthezhath

    Non Official Part Time Director

    • Tenure: 2.1yrs
    • Compensation: ₹195.00k
  • Radhakrishna Menon (54yo)

    Non Official Part Time Director

    • Tenure: 3.4yrs
    • Compensation: ₹270.00k
  • Satinder Singh

    Part Time Official Nominee Director

    • Tenure: 1.8yrs

Company Information

Cochin Shipyard Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cochin Shipyard Limited
  • Ticker: 540678
  • Exchange: BSE
  • Founded: 1969
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹44.040b
  • Shares outstanding: 131.54m
  • Website: https://www.cochinshipyard.com

Number of Employees


Location

  • Cochin Shipyard Limited
  • Administrative Building
  • Cochin Shipyard Premises
  • Kochi
  • Kerala
  • 682015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540678BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2017
COCHINSHIPNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2017

Biography

Cochin Shipyard Limited engages in the shipbuilding and repair of ships/offshore structures in India. Its shipbuilding operations include offering tankers, product carriers, bulk carriers, passenger vessel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:57
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.