Cochin Shipyard Q2 Review - Moderation On Margin Going Forward: Dolat Capital
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Cochin Shipyard Ltd. delivered sales/ Ebitda/ profit after tax growth of 6%/ 32%/ 25% YoY primarily due to execution of fixed cost portion of indigenous aircraft carrier project, lower provisions and job mix.
Order backlog stood at ~Rs 210 billion (including level-one of next generation missile vessel), 7.4 times trailing twelve months sales.
Revenue booking from indigenous aircraft carrier is expected to continue till FY24.
Cochin Shipyard expects signing of next generation missile vessels to complete by CY21 and execution will commence from FY24 with delivery of first vessel expected in 48 months and consequently other vessels after every six months.
Cochin Shipyard has cut its FY22 sales guidance to ~Rs 31 billion from Rs 35 billion with potential Ebitda margin of ~24%.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.