defense

Cochin Shipyard

COCHINSHIP · Nifty 50

₹1,500.2

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positiondefense sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score70/100 (STRONG). 2 positive flags, 4 concerns.
Historical Context62 similar technical setups. Average outcome: -10.1% decline. 0% positive.

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Cochin Shipyard scores 70/100 on fundamentals (strong). Cochin Shipyard: BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 12.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE12.2%=
14.3%Net Margin
×
0.3xTurnover
×
2.5xLeverage

ROE of 12.2% is moderate margin-driven and stable. Net margin of 14.3% × asset turnover of 0.35x × leverage of 2.5x.

What This Means

Net margin of 14.3% means the company keeps ₹14.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.35x means the company generates ₹0.35 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.5x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

23.0%

Operating

21.7%

Net

14.3%

improving

Gross margin 23.0% → operating margin 21.7% → net margin 14.3%. Margins are IMPROVING.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -1.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 11.8x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.5x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -27.6% — spending more than earning. Check capex cycle.

Peer Comparison

Cochin Shipyard is compared against 7 peers in the defense sector.

BDLBELDATAPATTNSGRSEHALMAZDOCKZENTEC

Key Watchpoints

🟢

Breaks above ₹1575 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1425 (-5%)

Further downside risk

🟢

Defense sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (198.3%) than equity (5.3%)
⚠️ Low Earnings Quality: Cash flow only -1.7x earnings — weak cash conversion

Risk Flags

🔴 2 Critical⚠️ 2 Warning✅ 2 Positive6 total flags
🔴Cash covers only 1% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -1.7x net income. Profit not converting to cash — aggressive accounting possible.

⚠️64% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Working capital changes are 154% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

✅Receivables decreasing — 25.9% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

✅High promoter holding: 68%
Governance

Strong insider alignment. Promoters have significant skin in the game.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
51.0UNAVAILABLE
P/B Ratio
6.4HIGH
Market Cap
₹3747059.8L CrHIGH
From 52W High
66% of high
Sector Peers
7
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