Cochin Shipyard (COCHINSHIP)
CyclicalFairStock Score: 14/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,496.5 |
| Market Cap | ₹39,370.04 Cr |
| P/E Ratio | 54.94 |
| ROCE | 20.35% |
| ROE | 12.52% |
| Dividend Yield | 0.89% |
| Profit Growth | -27.72% |
| Debt/Equity | 0.28 |
| Sales Growth | -4.83% |
| Free Cash Flow | ₹241 Cr |
| Promoter Holding | 67.91% |
| 52-Week Range | ₹1,187 — ₹1,979.9 |
| Sector | Industrial Manufacturing |
| Book Value | ₹223.24 |
Strengths
- Debt/Equity is low at 0.20, indicating a conservative balance sheet.
- ROCE of 20.35% and 5-year revenue CAGR of 11.32% show decent operational momentum.
- Promoter holding of 67.91% provides ownership stability and alignment.
- Latest quarter sales of ₹1,165 Cr and positive free cash flow of ₹241 Cr show the business is still generating cash.
Concerns
- Valuation is extreme: P/E 55.17, P/B 7.47, price ₹1,592.80 versus Graham Number ₹360.14 and DCF value ₹28.35.
- Profit growth is negative at -13.55% even while sales grew 15.68%, pointing to margin pressure.
- Negative EV/EBITDA and low free cash flow yield of about 0.6% versus market cap are serious red flags.
- Piotroski F-score of 5/9, Altman Z-score of 2.77, and FairStock Score of 33/100 indicate a risky profile.
AI Analysis
At ₹1,592.80, Cochin Shipyard is priced for perfection, but I see no margin of safety. A P/E of 55.17 and a P/B of 7.47 would make Graham wince. The Graham Number is ₹360.14, and the DCF value is ₹28.35; at this price I am being asked to pay roughly four times the conservative value. Yes, the business has some fine traits: debt/equity is only 0.20, ROCE is 20.35%, 5-year revenue CAGR is 11.32%, and the latest quarter sales are ₹1,165 Cr. The promoter holding of 67.91% provides stability. But the owner earnings tell a different story: net profit fell 13.55% despite 15.68% sales growth, and free cash flow of ₹241 Cr gives a yield of barely 0.6% on the ₹39,244 Cr market cap. Negative EV/EBITDA is a red flag I cannot ignore. The Piotroski F-score of 5/9 and Altman Z-score of 2.77 suggest only middling financial health, not a fortress. I do not chase cyclicals at peak multiples. Shipbuilding is inherently cyclical and capital-intensive, and today's expansion may be tomorrow's overcapacity. My rule is to be fearful when others are greedy. Here, the market is paying ₹1,592.80 for book value of ₹213.27 and a DCF value of ₹28.35. I would rather wait for a price closer to Graham-style value, or for evidence that profit growth and cash flow can catch up with the valuation. Until then, this is a business to watch, not a business to own.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer