1. At a Glance

Cochin Shipyard isn’t just floating vessels — it’s floating somevery serious profits. In Q1 FY26 alone, it clocked ₹248 Cr PBT and ₹188 Cr PAT. While Mazagon Dock hogs the headlines, CSL is busy delivering submarines, aircraft carriers, tankers, and even fancy cruise ships. The only thing bigger than their drydock is the margin on recent defence contracts. But before you salute the ₹43,834 Cr market cap — remember it’s trading at51.6x earningsand 7.8x book. This warship builder ain’t cheap anymore.

2. Introduction – From Sea Trials to Street Smiles

Once dismissed as “that other shipyard”,Cochin Shipyard Ltd (CSL)has spent the last decade steamrolling its way into India’s defence and commercial marine game. From building the INS Vikrant (yes, an aircraft carrier) to exporting ships to Europe, CSL has gone from dockyard to stockyard darling.

But now, the real question isn’t “what next?” — it’show long can they keep the growth engine roaring while balancing PSU baggage and bloated valuations?

3. Business Model (WTF Do They Even Do?)

Cochin Shipyard operates across:

• Shipbuilding– Naval vessels, tankers, ferries, dredgers, tugs.
• Ship Repair– Naval, commercial, oil & gas platforms.
• Marine Engineering– Training & R&D.
• Strategic/Defence Solutions– Submarine refits, aircraft carrier builds.

They’rethe only Indian yard capable of building an indigenous aircraft carrier, with clients like:

• Indian Navy
• ONGC
• BPCL
• Foreign governments (exports to Europe, Middle East, Africa)

They’re not building toy boats — they’re building floating cities.

4. Financials Overview

FY25 (TTM)Snapshot:

• Revenue: ₹4,795 Cr
• EBITDA: ₹925 Cr
• PAT: ₹850 Cr
• EPS (TTM): ₹32.31
• P/E: 51.6x
• ROE: 15.8%
• ROCE: 20.1%
• OPM: 19%

Margins are expanding again after the hiccup in FY23. Order book visibility = 3+ years. But beware — valuations are swimming into deep waters.

5. Valuation – Fair Value Range (P/E, EV/EBITDA, DCF)