Cochin Shipyard Ltd 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. It is a PSU mid-cap with a market capitalisation of Rs 13,775 crore. The Government holds 72.86% of the equity capital. The free-float market capitalisation is only Rs. 3,738 crore.
The Company is operationally doing very well. It declared robust Quarterly Results and half-yearly results for the fiscal year 2024. The net sales of the company increased by 48.9 per cent to Rs 1,011.7 crore and the net profit grew by 61 per cent to Rs 181.5 crore in Q2FY24 compared to Q2FY23.
The company’s net sales increased by 32.3 per cent to Rs 1,487.6 crore, and the net profit grew by 81 per cent to Rs 280.2 crore in H1FY24 compared to H1FY23.
On an annualized basis, the net sales of CSL decreased by 25.9 per cent to Rs 2,364.6 crore and net profit decreased by 46 per cent to Rs 304.17 crore in FY23 as compared to FY22.
The order book is strong and there is revenue visibility. As of June 2023, the company’s order book stands at Rs 22,000 crore. As of the September quarter, FIIs have increased their stake from 5.73 per cent to 5.82 per cent.
The company has a healthy dividend payout of 36.8 per cent.
Cochin Shipyard Ltd has approved the sub-division/ split of one of its equity shares of the face value of Rs 10 each fully paid up into two shares of the face value of Rs 5 each paid up, subject to shareholders approval. The record date for the sub-division/ split of equity shares shall be decided after obtaining approval for sub-division/ split from the shareholders through postal ballot electronic voting process and will be intimated in due course.
“Approved the sub-division/ split of existing 1 (One) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up, subject to shareholders approval,” the exchange filing by the company stated.
The Company has also approved an 80 per cent interim dividend for investors. The 80 per cent dividend translates into Rs 8 dividend per equity share of Rs 10 share of Rs 10 each fully paid up for the financial year 2023-24.
“Declared an interim dividend of Rs 8 per equity share of Rs 10 each fully paidup (80%) for the financial year 2023-24,” it said. The record date is fixed for Monday, November 20, 2023, for determining the eligibility of shareholders for dividend payment.
“Fixed Monday, November 20, 2023 as the Record Date for the aforesaid interim dividend,” the filing stated. The 80 per cent interim dividend shall be paid to the eligible shareholders on or before December 06, 2023.
Cochin Shipyard has been a delight for its investors. The stock has given multibagger gains of nearly 100 per cent in 6 months and heavily outperformed the Indices.
Given the sound business model and the low floating stock, the stock is definitely a good buy on dips.