Rs 22,000 crore order book & FIIs increase stake: Board announces stock split after Rs 8/share dividend; PAT zooms over 80 per cent!

The stock gave multibagger returns of over 120 per cent in just 6 months whereas BSE Sensex Index is up by 12.5 per cent.

Cochin Shipyard Ltd (CSL) informed that the Board of Directors of the company has approved the sub-division/stock split of the existing 1 equity share of face value of Rs 10 each fully paid up into 2 equity shares of face value of Rs 5 each fully paid up, subject to shareholders approval. The company fixed the record date for the stock split as Wednesday, January 10, 2024.

Earlier to the above stock split, the company declared an interim dividend of Rs 8.00 per equity share of Rs 10 each fully paid up (80 per cent) for the financial year 2023-24. The ex-date for the dividend was Monday, November 20, 2023.  

After a challenging FY23 marred by a 25.9 per cent decrease in net sales and a 46 per cent dip in net profit compared to FY22, the company staged a remarkable turnaround in the first half of FY24. Quarterly Results were particularly impressive, with net sales skyrocketing 48.9 per cent to Rs 1,011.7 crore and net profit surging 61 per cent to Rs 181.5 crore in Q2 compared to the same period the previous year. This momentum continued in H1FY24, with net sales climbing 32.3 per cent to Rs 1,487.6 crore and net profit soaring 81 per cent to Rs 280.2 crore. While FY23 remains a blemish on the books, the company's robust performance in the first half of FY24 paints a picture of an impressive resurgence and bodes well for the future.

Today, shares of CSL surged 1.08 per cent to Rs 1,271.05 per share with an intraday high of Rs 1,288.40 and a low of Rs 1,265.35. The stock has a 52-week high of Rs 1,329 and a 52-week low of Rs 411.

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 Rs 16,720 crore and as of September 2023, the company’s order book stands at approx. Rs 22,000 crore. As of the September quarter, FIIs have increased their stake from 5.73 per cent to 5.82 per cent.

The company has been maintaining a healthy dividend payout of 36.8 per cent. The stock gave multibagger returns of over 120 per cent in just 6 months whereas BSE Sensex Index is up by 12.5 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.