- 17 Jan 2024
- ICICI Securities
NEW DRY DOCK AND SHIP REPAIR FACILITIES TO BE COMMISSIONED TODAY
COCHINSHIP - 1312 Change: -4.95 (-0.38 %)News: Cochin Shipyard’s (CSL) new dry dock facility and International Ship Repair Facility (ISRF) will be commissioned today (17th Jan 2023). Total project cost of these projects is Rs 2769 crore. PM Narendra Modi will inaugurate these facilities today. The new dry dock (with 600 tonne gantry crane) will enable India to construct large aircraft carriers of up to 70,000 tonnes displacement. The ISRF, which has ship lift & transfer system of 6,000 tonnes capacity, will increase India’s ship repair capability by about 25%.
Views: With commissioning of these capacities, Cochin Shipyard’s shipbuilding and ship-repair capabilities have increased significantly. Company’s order backlog is estimated to be at Rs 21500 crore (8x TTM revenues), provides strong revenue growth visibility. Existing shipbuilding and ship-repair contracts are witnessing significant pick-up in execution. Moreover, order pipeline remains healthy in both shipbuilding (defence and commercial including exports) and ship-repair segments; provides further longer-term visibility.
Impact: Positive