Rs 22,000 crore order book & FIIs increase stake: This multibagger shipping company bags new order worth Rs 488.25 crore from Ministry of Defence!

The stock gave multibagger returns of over 120 per cent in just 6 months whereas BSE Sensex Index is up by 12.4 per cent.

Cochin Shipyard Ltd (CSL) informed that the company has bagged a new order worth Rs 488.25 crore from 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.

Additionally, the company's board has proposed a stock split, subject to shareholder approval. This will split each existing Rs 10 share into two Rs 5 shares, making the stock more accessible and potentially increasing liquidity. The record date for the split is 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 rough FY23 with plummeting sales and profits, Cochin Shipyard has pulled off a spectacular comeback in the first half of FY24. Quarterly figures went through the roof, with Q2 alone witnessing a stellar 48.9 per cent jump in sales and a 61 per cent surge in net profit. This momentum carried over into H1FY24, with overall sales up by 32.3 per cent and profits a staggering 81 per cent higher. While the blemish of FY23 remains, the company's remarkable rebound in just six months paints a vibrant picture of revival and promises a bright future ahead.

On Friday, shares of CSL surged 0.39 per cent to Rs 1,302.65 per share with an intraday high of Rs 1,315 and a low of Rs 1,282.05. The stock has a 52-week high of Rs 1,337 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 12.4 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.