Rs 22,000 crore order book: Heavy buying in this multibagger shipbuilding & repair stock; jumps over 5 per cent on September 03
The stock gave multibagger returns of 315 per cent in just 1 year whereas BSE Sensex Index is up by 26.3 per cent.
On Tuesday, shares of Cochin Shipyard Ltd gained 5.24 per cent to an intraday high of Rs 1,947.80 per share from its previous closing of Rs 1,850.80. At the closing bell, shares of the company were trading at Rs 1,881.30 per share, up 1.65 per cent with a spurt in volume by more than 1.10 times on BSE. The stock’s 52-week high is Rs 2,977.10 and its 52-week low is Rs 435.75.
The Defence Acquisition Council (DAC) is poised to greenlight a tender valued at roughly Rs 70,000 crore, earmarked for Indian shipyards under the 'Make in India' drive. Notably, this tender is set to extend an invitation to private-sector shipyards as well. The scope of the tender is likely to encompass Category A shipyards, including prominent names like Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Engineers Limited, Goa Shipyard Limited, and Larsen & Toubro, alongside other notable players in the shipbuilding industry.
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 49,000 crore and as of March 31, 2023, the company’s order book stands at approx. Rs 22,000 crore. Furthermore, 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.
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Additionally, Cochin Shipyard Limited (CSL) has achieved a significant milestone with the successful launch of its International Ship Repair Facility (ISRF). The facility, a substantial investment of Rs 970 crore, is strategically located on a 42-acre leasehold property owned by the Cochin Port Authority at Willingdon Island, Kochi. Equipped with advanced technology, including a 6,000T ship-lift, six workstations, and approximately 1400 meters of berths, the ISRF is designed to efficiently handle vessels up to 130 meters in length. Its capacity to simultaneously repair six such vessels underscores its potential to become a leading ship repair hub in the region. The facility's commercial operation was marked by the successful docking of the 'HSC Parali', a vessel belonging to the Union Territory of Lakshadweep Administration. This achievement is a testament to CSL's enhanced ship repair capabilities, which have been further bolstered by the recent success of Udupi Cochin Shipyard Limited (UCSL) in securing substantial orders for shipbuilding projects, including eight eco-friendly cargo vessels and four tugboats.
According to Quarterly Results, net sales increased by 62.1 per cent to Rs 771.5 crore, operating profit increased by 61 per cent to Rs 261.4 crore and net profit increased by 77 per cent to Rs 174.2 crore in Q1FY25 compared to Q1FY24. In its annual results, net sales increased by 62 per cent to Rs 3,830.45 crore and net profit increased by 157 per cent to Rs 783.28 crore in FY24 compared to FY23.
The President of India owns 19,16,86,928 shares or 72.86 per cent stake in the company. As of June 2024, DIIs have increased their stake to 2.50 per cent compared to 2.45 per cent respectively in March 2024. The stock gave multibagger returns of 315 per cent in just 1 year whereas BSE Sensex Index is up by 26.3 per cent. Investors should keep an eye on this shipbuilding stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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