Cochin Shipyard Limited

“Cochin Shipyard owns irreplaceable large-dock infrastructure in a government-mandated defense shipbuilding cycle, making permanent capital impairment structurally unlikely — but the stock at 55.9x trailing earnings and 7.13x book, against a 13-16% ROE business with negative FCF and PSU governance constraints, offers only a 1.5-2x base-case return over 10 years. The business is worth owning; the current price is not. A correction to the 35-40x forward earnings range (~INR 1,000-1,150) would create genuine asymmetry and justify initiating a position. Until then, existing holders should trim and patient investors should track.”