Why should you pay attention to Cochin Shipyard that's trading at 9 times FY23e earnings

In a few ideas for profit from Moneycontrol Pro, Jitendra Gupta of Moneycontrol.Com talks about a stock he is tracking closely--Cochin Shipyard.

Cochin Shipyard deserves attention at Rs 350. Currently, it is trading at 9 times its FY23 estimated earnings, which is quite good considering its strong order book, improving revenue visibility, zero debt, cash in the books and, of course, dividend yield of almost 4 percent.

Due to its execution capabilities, domain expertise, technology scale and very high entry barrier in this business, Cochin Shipyard is considered among very high-quality defence play, including Rs 10,000 crore L1 order pertaining to missile vessels.

It is currently sitting on an order book of close to Rs 20,000 crore, about seven times its annual revenue providing very good revenue visibility.