Cochin Shipyard shares tumble 12% over 2 sessions. Should you buy after multibagger corrects 26% in a year?

Cochin Shipyard shares fell to Rs 1,336 apiece on Tuesday morning. The stock crashed over 9% on Friday, recording its worst single-day plunge in more than two years. Overall, the stock has fallen more than 12% in just two straight sessions.

The sharp drop in the defence major’s share price was triggered after the company’s management, during an analyst conference call on Thursday, indicated that it is aiming for an EBITDA margin of 14% over the next two financial years, Business Standard reported. This is sharply lower than the 24% EBITDA margin reported for FY26.

Also read |Dividends and stock splits: Hindustan Copper, Cochin Shipyard among 200+ stocks with record dates this week. Check full list

ICICI Direct highlighted that Cochin Shipyard’s management expects FY27 revenue growth to stand at around 12-15%, supported by improving execution across shipbuilding and ship repair, with the company targeting 10 vessel deliveries during the year. The current order book stands at around Rs 22,000 crore, providing strong medium-term revenue visibility, and the order pipeline remains strong across both defence and commercial shipbuilding, the brokerage said.

Live Events

It noted that the management expects FY27 operating cash flow to turn positive, supported by higher vessel deliveries and milestone-based collections as execution accelerates, and remains confident of sustaining growth over the medium term, supported by a combination of strong order visibility, improving execution, new shipbuilding capacity and the scaling up of the ship-repair business.
The domestic brokerage has a ‘Hold’ call on the shares of Cochin Shipyard with a target price of Rs 1,590 apiece, implying more than 15% upside potential from the stock’s previous closing price of Rs 1,381 apiece.

Cochin Shipyard and Drydocks World form joint venture

Drydocks World, a DP World company, and Cochin Shipyard last week announced the signing of a joint venture agreement to operate and expand the International Ship Repair Facility (ISRF) Cochin. The deal builds on the Memorandum of Understanding (MoU) signed by Drydocks World (DDW) and the Indian defence major during India Maritime Week 2025, under which the two organisations agreed to explore opportunities for collaboration in ship repair and allied maritime services

Under the arrangement, the joint venture will operate, consolidate and expand the International Ship Repair Facility (ISRF) in Cochin, creating additional capacity to service a wider range of vessels and meet the growing requirements of Indian, regional and international customers.

The partnership is expected to strengthen Cochin’s position as a maritime services hub, while creating opportunities across ship repair, engineering, fabrication and associated maritime services in Kerala.

Also read |Cochin Shipyard Ltd and Drydocks World form joint venture to strengthen India’s ship repair industry

Cochin Shipyard share price

Cochin Shipyard shares have fallen around 12% in a week and 10% in a month, overall being down 17% in 2026 so far. The stock has overall fallen more than 25% in one year.

In the longer term, Cochin Shipyard shares have delivered multibagger returns of around 144% in three years and 628% in five years. The company has a market capitalisation of around Rs 35,453 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.