Rs 22,500 Crore Order Book: Shipbuilding & Repair Company Reports Positive Results & Announces 80 Per Cent Dividend & Raising USD 50 Million
The stock gave multibagger returns of 177 per cent in just 1 year whereas BSE Sensex Index is up by 22.3 per cent.
On Friday, shares of Cochin Shipyard Ltd hit a 5 per cent lower circuit to Rs 1,449.45 per share with an intraday high of Rs 1,494 per share and an intraday low of Rs 1,449.40 per share. The stock’s 52-week high is Rs 2,977.10 and its 52-week low is Rs 515. The shares of the company saw a spurt in volume by more than 2 times on BSE.
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 38,000 crore and as of March 31, 2023, the company’s order book stands at approx. Rs 22,500 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 13 per cent to Rs 1,143.20 crore, operating profit increased by 7 per cent to Rs 298.41 crore and net profit increased by 4 per cent to Rs 188.92 crore in Q2FY25 compared to Q2FY24. 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. Looking at its half-yearly results, net sales increased by 29 per cent to Rs 1,914.67 crore, operating profit increased by 26 per cent to Rs 559.77 crore and net profit increased by 30 per cent to Rs 363.16 crore in H1FY25 compared to H1FY24.
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Cochin Shipyard Limited has declared an interim dividend of Rs 4 per equity share (80 per cent of face value of Rs 5 per share) for the financial year 2024-25, with the record date set for Wednesday, November 20, 2024. Additionally, the company has received approval to raise up to US$ 50 million through the issuance of non-convertible senior unsecured fixed-rate notes. These notes will be used to finance eligible sustainable projects or other permissible end uses, subject to market conditions and regulatory approvals.
In October 2024, The President of India acting through the Ministry of Ports Shipping and Waterways Government of India sold 1,30,15,689 shares or 4.95 per cent stake in the company. The stock gave multibagger returns of 177 per cent in just 1 year whereas BSE Sensex Index is up by 22.3 per cent. Investors should keep an eye on this shipbuilding stock.
Disclaimer: The article is for informational purposes only and not investment advice.