2:1 stock split in FY24 & Rs 22,000 crore order book: Multibagger shipbuilding & repair stock in green as company reports stellar quarterly results; DIIs increase stake in Q1FY25
The stock gave multibagger returns of 611 per cent in just 1 year whereas BSE Sensex Index is up by 21 per cent.
On Friday, shares of Cochin Shipyard Ltd gained 2.96 to Rs 2,380.30 per share from its previous closing of Rs 2,311.80 with an intraday high of Rs 2,490 and an intraday low of Rs 2,369.15. The stock’s 52-week high is Rs 2,977.10 and its 52-week low is Rs 316.50.
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 61,000 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.
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.
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Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Ltd has solidified its position as a leading Indian shipbuilding company through a series of significant achievements. The shipyard has secured a substantial Rs 1,100 crore order from Wilson ASA, Norway, for eight eco-friendly dry cargo vessels, expanding on an earlier contract for six similar vessels. Additionally, UCSL has won a Rs 250 crore order to build three powerful tugboats for Ocean Sparkle Limited, followed by a repeat order from Polestar Maritime for a second tug. These successes, coupled with being the first shipyard to comply with new tug regulations, demonstrate UCSL's rapid growth and expertise since its revival in 2020, positioning it as a key player in the domestic and international shipbuilding market.
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 611 per cent in just 1 year whereas BSE Sensex Index is up by 21 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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