This PSU stock hit a new 52-week high today; do you hold it?

The shares surged 10 per cent on the day.

On September 3, the shares of Cochin shipyard Ltd hit a new 52-week high and closed at Rs 485.35. The stock opened at Rs 440 and has made an intraday high and low of Rs 491.2 and Rs 437, respectively.  

Cochin shipyard Ltd is a market leader in the construction of all types of vessels, repairs, and refurbishment of all types of vessels, as well as periodic upgradation and ship life extension. The stock is in news as Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal announced that Cochin Shipyard Ltd will invest Rs 50 crore in startup companies operating in the maritime sector.  

On a consolidated basis, the FY22 sales and net profit stood at Rs 3190 and Rs 587 crore, respectively. As per the FY22 period ending, the company has ROE and ROCE of 14.1 per cent and 18 per cent, respectively.    

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 440 crore, a YoY improvement of 33.7 per cent. Similarly, Q1FY23 net profit increased by 53 per cent to Rs 49 crore from Rs 32 crore in Q1FY22.    

The long-term sales and net profit numbers also look good. The company’s 10-year sales and net profit CAGR stood at 9 per cent and 14 per cent, respectively.  

About the shareholding pattern, 72.86 per cent of the stake is owned by the Government of India, 2.75 per cent by FIIs, 4.37 per cent by DIIs, and the rest by 20.02 per cent by non-institutional investors.    

The company has a market capitalisation of Rs 6384.3 crore and currently it is trading at a PE multiple of 9.63x. The stock has a 52-week high and low of Rs 491.2 and Rs 437, respectively.