Rs 22,000 crore order book: Multibagger shipbuilding & repair company commenced the commercial operations at its Rs 970 crore International Ship Repair Facility (ISRF)
The stock gave multibagger returns of 530 per cent in just 1 year whereas BSE Sensex Index is up by 21 per cent.
Cochin Shipyard Limited (CSL) has successfully launched its International Ship Repair Facility (ISRF) into commercial operation. This significant milestone was achieved with the successful docking of the ‘HSC Parali’, a vessel belonging to the Union Territory of Lakshadweep Administration. The ISRF, a major infrastructure project, represents a substantial step forward for CSL's ship repair capabilities.
The ISRF is a substantial investment, costing Rs 970 crore, and 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 facility 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.
Earlier, Udupi Cochin Shipyard Limited (UCSL) rapidly emerged as a shipbuilding leader, securing a substantial Rs 1,100 crore order for eight eco-friendly cargo vessels and additional contracts for four tugboats, solidifying its position in both domestic and international markets.
On Wednesday, shares of Cochin Shipyard Ltd plunged 0.70 per cent to Rs 2,190 per share from its previous closing of Rs 2,204.70 with an intraday high of Rs 2,238.55 and an intraday low of Rs 2,178.70. The stock’s 52-week high is Rs 2,977.10 and its 52-week low is Rs 322.10.
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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 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.
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 530 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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