President of India’s portfolio gains Rs 25,64,77,10,966 from this multibagger shipping stock after stock split with Rs 22,000 crore order book; scrip hit upper circuit & 52-week high!

The stock gave multibagger returns of over 150 per cent in just 6 months whereas BSE Sensex Index is up by 10 per cent.

The benchmark indices ended the day in green with BSE Sensex Index up 0.38 per cent at 71,658 and NSE Nifty-50 Index up 0.34 per cent at 21,619. The market capitalization of BSE-listed companies was Rs 3,68,76,499 crore or approx. Rs 369 lakh crore as of January 10, 2024.

Along with the market in green, one multibagger stock from the shipbuilding & allied services industry was locked in 20 per cent upper circuit to Rs 802.40 per share from its previous closing of Rs 668.70 per share. The stock also made a fresh 52-week high of Rs 802.40 per share with a spurt in volume by more than 10.85 times on BSE.  

The stock name is COCHIN SHIPYARD LTD.

Cochin Shipyard Ltd (CSL) is a leading player in the construction of all kinds of vessels, repairs and refits of all types of vessels including periodic upgradation and life extension of ships. The company has a market cap of over Rs 21,000 crore and as of September 2023, the company’s order book stands at approx. Rs 22,000 crore and FIIs have increased their stake from 5.73 per cent to 5.82 per cent.

Today, the shares of CLS underwent a stock split of equity shares from a face value of Rs 10 to a face value of Rs 5.

Before the stock split of equity shares, The President of India’s portfolio owned 9,58,43,464 or 72.86 per cent and after the stock split, The President of India’s portfolio now owns 19,16,86,928 shares or 72.86 per cent. (What is a stock split? A stock split is like slicing a pizza into more pieces, making each slice cheaper but not changing the total pizza value).

As of today’s closing, price, the stock is up by Rs 133.80 per share or 20 per cent in just 1 day.

Therefore, 19,16,86,928 shares x Rs 133.70 per share = 25,64,77,10,966 in just 1 day from this multibagger shipping stock.  

Recently, CSL has bagged a new order worth Rs 488.25 crore from the Ministry of Defence (MoD). The work package includes repair and maintenance of the types of equipment and systems onboard the naval vessel. Cochin Shipyard Limited has begun work on a new project approved by the Ministry of Defence in Q2 of FY24. The project, targeted for completion by Q1 of FY25, is part of the shipyard's ongoing expansion strategy aimed at strengthening its pan-India presence and fostering a larger national ecosystem for shipbuilding and repairs.

According to the Quarterly Results, the net sales increased by 48.9 per cent to Rs 1,011.7 crore and the net profit increased by 61 per cent to Rs 181.5 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 32.3 per cent to Rs 1,487.6 crore and the net profit increased by 81 per cent to Rs 280.2 crore in H1FY24 compared to H1FY23. According to its annual results, the net sales decreased by 25.9 per cent to Rs 2,364.6 crore and net profit decreased by 46 per cent to Rs 304.17 crore in FY23 compared to FY22.

The company has been maintaining a healthy dividend payout of 36.8 per cent. The stock gave multibagger returns of over 150 per cent in just 6 months whereas BSE Sensex Index is up by 10 per cent. Investors should keep an eye on this Mid-Cap shipbuilding stock.

Disclaimer: The article is for informational purposes only and not investment advice.