President of India’s portfolio gains Rs 35,587 crore from this multibagger shipbuilding & repair stock with Rs 21,500 crore order book; PAT zooms over 500 per cent!

The stock gave multibagger returns of 762 per cent in just 1 year whereas BSE Sensex Index is up by 21 per cent.

Today, shares of Cochin Shipyard Limited (CSL), gained 10 per cent to an intraday high & fresh 52-week high of Rs 2,100 per share from its previous closing of Rs 1,910.95 per share.

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 51,000 crore and as of December 31, 2023, the company’s order book stands at approx. Rs 21,500 crore. Earlier, 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 on January 10, 2024.

According to Quarterly Results, net sales increased by 114.3 per cent to Rs 1,286.05 crore and net profit increased by 558.1 per cent to 258.88 crore in Q4FY24 compared to Q4FY23. In its annual results, net sales increased by 62 per cent to Rs 3,830.45 crore and net profit increased by 157 per cent to Rs 783.28 crore in FY24 compared to FY23.

Additionally, CSL is making waves in both international relations and clean energy. On one hand, CSL has been qualified by the US Navy for repair work on their vessels, signified by a signed agreement on April 5, 2024. This positions CSL as a major player on the global stage. On the other hand, CSL is at the forefront of India's clean energy push. Their successful construction of India's first hydrogen fuel cell ferry, inaugurated by Prime Minister Modi on February 28, 2024, represents a significant milestone. This pilot project not only showcases India's commitment to net zero emissions by 2070 but also paves the way for wider adoption of green hydrogen fuel in the maritime sector, aligning with the National Green Hydrogen Mission and potentially giving India a global competitive advantage in a sustainable future.

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Furthermore, CSL has bagged a new order worth Rs 488.25 crore from Ministry of Defence (MoD). The work package includes repair and maintenance of the 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 to strengthen its pan-India presence and foster a larger national ecosystem for shipbuilding and repairs.

The President of India owns 19,16,86,928 shares or 72.86 per cent stake in the company. From Rs 243.48 to Rs 2,100 per share, the stock gave multibagger returns of 762 per cent or Rs 1,856.52 per share in just 1 year. Therefore, the President of India’s portfolio gains approx. Rs 35,587 crore in just 1 year (19,16,86,928 shares x Rs 1,856.52 per share).

As of March 2024, FIIs have increased their stake to 5.23 per cent and DIIs increased their stake to 2.45 per cent compared to 4.11 per cent and 2.20 per cent respectively in December 2023. The stock gave multibagger returns of 762 per cent in just 1 year whereas BSE Sensex Index is up by 21 per cent. Investors should keep an eye on this shipbuilding stock.

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