News

Cochin Shipyard share price jumped over 7% in early trade on Tuesday after the company was declared L1 bidder by the Ministry of Defence for the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The PSU defence stock surged as much as 7.27% to ₹1,575.00 apiece on the BSE.

The rally in Cochin Shipyard share price today comes after four consecutive sessions of losses. The gains in the PSU defence stock were also supported by strong trading volumes.

Around 22 lakh equity shares of Cochin Shipyard changed hands on stock exchanges on February 17, significantly higher than its one week average trading volume of 5 lakh shares, and one month average volumes of 10 lakh shares.

Cochin Shipyard said that the Ministry of Defence has declared the company as L1 in the tender floated by the Ministry of Defence for construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The estimated total order value is around ₹5,000 crore.

“The final announcement of the contract will be subject to the satisfactory completion of necessary formalities in this regard, which will be updated in due course,” Cochin Shipyard said in a regulatory filing on February 16.

Cochin Shipyard share price has fallen 10% in three months and has declined 8% in six months. The defence PSU stock has rallied 27% in one year, and has delivered multibagger returns of 533% in three years and a staggering 762% over the past five years.

At 9:25 AM, Cochin Shipyard share price was trading 5.88% higher at ₹1,554.55 apiece on the BSE.

(More to come)Ankit Gohel is the Deputy Chief Content Producer at Livemint, with nearly eight years of experience covering financial markets and the economy. Throug...

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories