1:2 stock split & Rs 21,500 crore order book: This shipbuilding & repair company signs master ship repair agreement with US Navy

The stock gave multibagger returns of 381 per cent in just 1 year whereas BSE Sensex Index is up by 25 per cent.

Cochin Shipyard Limited (CSL), an Indian government enterprise, has been qualified by the US Navy's Military Sealift Command to perform repair work on US naval vessels after a comprehensive evaluation process. This qualification is signified by a non-financial Master Shipyard Repair Agreement (MSRA) signed between CSL and the US Navy on April 5, 2024, which will facilitate the repair of US Naval vessels under Military Sealift Command at Cochin Shipyard.

Additionally, On February 28, 2024, Prime Minister Narendra Modi virtually inaugurated India's first indigenously-built hydrogen fuel cell ferry, a significant milestone for the country's clean energy initiatives. This pilot project, constructed by Cochin Shipyard, aligns with India's commitment to achieving net zero emissions by 2070. The hydrogen fuel cell technology boasts zero emissions, reduced noise, and improved energy efficiency, contributing to the fight against global warming. This inauguration marks a crucial step towards adopting green hydrogen as a maritime fuel, as envisioned in the National Green Hydrogen Mission. Early adoption of this technology positions India for a global competitive advantage in the maritime sector, ultimately supporting the nation's aspirations for sustainable green energy.

Today, shares of CSL gained 8.32 per cent to an intraday high of Rs 1,170.05 per share from its previous closing of Rs 1,080.65 per share. The stock also made a fresh 52-week high of Rs 1,170.05 per share.

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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 30,000 crore and as of December 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.

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 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.

The company has been maintaining a healthy dividend payout of 36.8 per cent. The stock gave multibagger returns of 381 per cent in just 1 year whereas BSE Sensex Index is up by 25 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.