Rs 22,000 crore order book & FIIs increase stake; Board announces stock split and 80 per cent dividend!

The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Sensex Index is up by 5.2 per cent.

Cochin Shipyard Ltd (CSL) informed that the Board of Directors of the company has approved the sub-division/ stock split of 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 record date for the purpose of above sub-division/ split of equity shares shall be decided after obtaining approval for sub-division/ split from the shareholders through postal ballot electronic voting process and will be intimated in due course.

The company also 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 company fixed the record date as Monday, November 20, 2023.

Furthermore, the company announced stellar Quarterly Results and half-yearly results for the fiscal year 2024. According to the Quarterly Results, the net sales increased by 48.9 per cent to Rs 1,011.7 crore and the net profit increased by 61 per cent to Rs 181.5 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 32.3 per cent to Rs 1,487.6 crore and the net profit increased by 81 per cent to Rs 280.2 crore in H1FY24 compared to H1FY23. According to its annual results, the net sales decreased by 25.9 per cent to Rs 2,364.6 crore and net profit decreased by 46 per cent to Rs 304.17 crore in FY23 compared to FY22.

Today, shares of CSL surged 0.50 per cent to Rs 1,047.2 per share with an intraday high of Rs 1,073.8 and a low of Rs 1,043.1. The stock has a 52-week high of Rs 1,258 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 13,775 crore and as of June 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 100 per cent in just 6 months whereas BSE Sensex Index is up by 5.2 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.