Explained: Why Cochin Shipyard shares soared 10% today

At around 12:25 pm, shares of the company were up 9.45% at Rs 1,837.30 on the Bombay Stock Exchange (BSE).

In Short

• Cochin Shipyard shares surged 10%, reversing four-day losing streak
• Inclusion in FTSE All World Index drives stock's sudden rise
• Despite recent correction, 2024 gains stand at 169%.

Cochin Shipyard Ltd. shares surged by as much as 10% on Friday, recovering from a recent four-day losing streak. This rally follows an 8% decline in the stock over the last few trading sessions.

At around 12:25 pm, shares of the company were up 9.45% at Rs 1,837.30 on the Bombay Stock Exchange (BSE).

The stock’s sudden rise is linked to its inclusion in the FTSE All World Index, with the index's rebalancing scheduled to take place during the final minutes of trading today. IIFL Alternative Research estimates that Cochin Shipyard could see inflows of over $30 million as a result of this rebalancing.

Cochin Shipyard shares have undergone a notable correction, dropping 43% from their July peak of Rs 2,979 as of Thursday’s close.

Despite this pullback, the stock remains relatively expensive, trading at a price-to-earnings (P/E) ratio of 38.3 times for the 2026 financial year, higher than its five-year average P/E of 36.5 times.

Analyst sentiment remains mixed. Of the five analysts covering the stock, three have issued a "buy" rating, while one has a "hold" recommendation and another suggests "sell."

Despite the recent correction, the stock has delivered an impressive 169% gain in 2024 so far.