Shares of Cochin Shipyard were gaining on Wednesday after the defence firm more than doubled its net profit in the third quarter.

What Happened: For the third quarter, the shipbuilding company reported an impressive 121.4% year-on-year growth in consolidated net profit, reaching ₹244.4 crore. The revenue from operations also showed a robust performance, rising by 64.6% year-on-year to ₹1,056.4 crore during the quarter.

In addition to the strong financial results, Cochin Shipyard declared a second interim dividend of ₹3.50 per equity share of ₹5 each fully paid-up (70%) for the financial year 2023-24. The record date for the interim dividend is set for Monday, February 12.

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What Brokerages Say: Analysts at ICICI Direct has assigned a “buy” call to the defence stock with a target price of ₹1340 per share. The brokerage firm notes that the order pipeline remains strong in defence and commercial ship-building and ship-repair segments, including exports.

Around ₹13,000 crore worth of ship-building contracts are in the pipeline, with tenders expected to be floated in the medium term. Additionally, ₹84,000 crore worth of orders are in the RFP stage, according to the management.

Price Action: Cochin Shipyard’s share price was up 2.79% at ₹903.15 in early trade on Wednesday.

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