Rs 22,000 crore order book: This multibagger shipbuilding & repair company will be participating in Phillipcapial’s Jewels of Bharat PSU Investor Conference 2.0

The stock gave multibagger returns of 675 per cent in just 1 year whereas BSE Sensex Index is up by 22 per cent.

Cochin Shipyard Limited (CSL) plans to participate in the "PHILLIPCAPITAL'S JEWELS OF BHARAT PSU INVESTOR CONFERENCE 2.0" on June 20, 2024 in New Delhi, organized by PhillipCapial. However, CSL clarified that they won't share unpublished price-sensitive information during the conference, and their participation is subject to change due to unforeseen circumstances.

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 55,000 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. On Friday, the stock gained 8.4 per cent and made a fresh new 52-week high of Rs 2,175 per share with a spurt in volume by more than 2.78 times on BSE.

Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has further solidified its partnership with leading Indian tug operator Ocean Sparkle Limited (OSL), owned by Adani Harbor Services. Building on the successful ahead-of-schedule delivery of two 62 T bollard pull ASD tugs currently operating at Paradeep Port and New Mangalore Port, UCSL secured a new order worth approximately Rs 250 crore for the construction of three even more powerful 70 T bollard pull ASD tugs. These state-of-the-art vessels, designed by Robert Allan Limited and built to meet stringent Indian regulations, will measure 33 meters long and boast features like twin main engines, powerful thrusters & advanced winches, generators and firefighting equipment.

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This project aligns with the Indian government's Aatmanirbhar Bharat and Make in India initiatives, as UCSL is the first shipyard to construct tugs complying with the new ASTDS regulations. Furthermore, UCSL's ongoing project with Polestar Maritime Limited, which involves building a second 70 T bollard pull ASD tug after the successful delivery of the first vessel "Konna Star", further demonstrates their ability to deliver high-quality ships on time and secure repeat business. This string of successful projects highlights the remarkable progress UCSL has made since its revival by CSL in September 2020, solidifying its reputation as a leading player in the Indian shipbuilding industry.

According to Quarterly Results, net sales increased by 114.3 per cent to Rs 1,286.05 crore and net profit increased by 558.1 per cent to 258.88 crore in Q4FY24 compared to Q4FY23. 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 March 2024, FIIs have increased their stake to 5.23 per cent and DIIs increased their stake to 2.45 per cent compared to 4.11 per cent and 2.20 per cent respectively in December 2023. The stock gave multibagger returns of 675 per cent in just 1 year whereas BSE Sensex Index is up by 22 per cent. Investors should keep an eye on this shipbuilding stock.

Disclaimer: The article is for informational purposes only and not investment advice.