Cochin Shipyard (COCHINSHIP)

FairStock Score: 28/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a margin of safety, and Cochin Shipyard offers none at ₹1,496.50. Graham's Number is only ₹360.14, implying a margin of safety of -314.20%; the DCF intrinsic value is ₹28.35. Those numbers tell me the market is paying for a future the current figures do not support. The stock sits within a 52-week range of ₹1,187–₹1,864, but that does not make it cheap. The business has some merit: ROCE is 20.35%, debt/equity is low at 0.28, free cash flow is positive at ₹241 Cr, and promoters hold 67.91%. But ROE is just 12.52%, and the growth engine is sputtering—sales growth is 6.01%, five-year revenue CAGR is 7.09%, while profit growth is -19.38%. The latest quarter showed sales of ₹1,165 Cr and net profit of ₹138 Cr, so profitability is modest relative to a ₹39,370 Cr market cap. Valuation is the problem: P/E 54.94, P/B 6.70, dividend yield 0.89%. Graham would call this speculative. The Piotroski F-Score is 5/9 and Altman Z-Score 2.77, which is not distressed but not a fortress. FairStock score 28/100 flags risk. EV/EBITDA of -261.15 is anomalous, and I would not use it as a positive without clarity. As a Buffett-style investor, I want a durable moat and a fair price. Shipbuilding is cyclical and capital-intensive; the figures show slower growth and falling profit. I would watch order execution, margin recovery, free cash flow, and valuation. Until price approaches intrinsic value, I pass.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer