2:1 Stock Split: Multibagger PSU Defence Stock Jumps 8.88% On Ex-Split Day, Hits 52-Week High

Large cap company from the Defence sector Cochin Shipyard Ltd shares today hit 52-week high and surged 8.88% as shares are trading ex-split today. Last trading price of Cochin Shipyard share on BSE is Rs 728.05 apiece. The company on December 14, 2023 fixed January 10, 2024 as the record date for 2:1 stock split. Cochin Shipyard shares soared 10.76% in last 1-week and offered multibagger returns of 156% in last 6-months. The company also announced a dividend of Rs 8/share for FY 2023-24 with ex-dividend date fixed as November 20, 2023. Check details below:

What Is Stock Split? When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. The companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.

Cochin Shipyard Trades Ex-Split In The Ratio Of 2:1: According to the regulatory filing dated Dec 14, "Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Company has fixed Wednesday, January 10, 2024 as the Record Date for the purpose of determining the eligibility of shareholders for 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."

Cochin Shipyard Inks Contract with MoD: Earlier last year Cochin Shipyard on December 20, 2023 the company issued its BSE filing stating, "we would like to inform that, the firm contract with MoD has been signed on December 19, 2023 for a value of Rs. 488.25 Crores. The work package includes repair and maintenance of the equipments and systems onboard the naval vessel. The work on the same has already been commenced during Q2 of FY24 based on the Approval of Necessity (AoN) from MoD, and is expected to be completed by Q1 of FY25."

Cochin Shipyard Stock Performance & Return: Its 52-week high price is Rs 765.00 per share and 52-week low price is Rs 205.50 per share, respectively. Cochin Shipyard has a market capitalisation of Rs 19,881.01 crore. Cochin Shipyard shares offered return 43% in last 3-months, soared 156% in last 6-months, gained 208% in last 1-year, and surged 329% in last 2-years. Cochin Shipyard offered rally of 283% in last 3-years. In last 5-years, Cochin Shipyard shares surged 308%.

Cochin Shipyard Shares Traded Ex-Dividend: As per the regulatory filing of the company dated November 7, 2023, "Declared an interim dividend of Rs. 8.00 per equity share of Rs. 10 each fully paidup (80%) for the financial year 2023-24. Fixed Monday, November 20, 2023 as the Record Date for the aforesaid interim dividend."

Cochin Shipyard Ltd Latest Financials Results: The Defence company for the quarter ended September declared a growth of nearly 61% in its net profit to Rs 181.5 crore as against Rs 112.79 crore in the corresponding period of last fiscal. Its revenue from operations for the quarter under consideration announced at Rs 1011.71 crore, up 48% as against Rs 683.18 crore in the similar quarter of last year. Cochin Shipyard's other income jumped Rs 87.56 crore for the quarter under review as against Rs 61.56 crore in the similar quarter of preceding year. Its EBITDA surged 41.2% to Rs 191.2 crore and margin narrowed by 80 basis points to 19% from 19.8%. Growth significantly came from the ship building and repair segment that soared by 48% from last year.

About: Cochin Shipyard was incorporated in the year 1972 as a fully owned Govt of India company. In the last three decades the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India. It can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has delivered two of India's largest double hull Aframax tankers each of 95,000 DWT, according to its official website.

Disclaimer:

The stock just highlights the dividend, stock split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.