Rs 2.25/Sh Dividend: Defence PSU Jumps Post Q1 Results, Shares Rally 619% In 1-Yr; Buy/Sell?

Defence public sector undertaking (PSU) Cochin Shipyard shares today gained 2.82% to 2377.00 per share on BSE after the company on August 8, 2024 reported healthy quarterly results. Cochin Shipyard declared a surge of 77% in its net profit for Q1FY2025 to Rs 174.2 crore as against the net profit of Rs 98.6 crore declared in the corresponding quarter of last year. The PSU's net profit slipped 33% from Rs 258.8 crore reported in March quarter, as per the BSE filing. The defence sector PSU announced its revenue from operations at Rs 771.47 crore, up 62.1% for Q1FY2025 as against Rs 475.86 crore in the year ago period. However, it slipped from Rs 1286 crore declared in the previous quarter. Cochin Shipyard recommended dividend of Rs 2.25 per share with record date yet to be announced. Check more details below:

Cochin Shipyard Shares Performance: The 52-week high price of the defence PSU is Rs 2977.10 per share (08/07/2024) and 52-week low price is Rs 316.50 apiece (11/08/2023), respectively. Its market capitalisation is Rs 62,665.84 crore. Cochin Shipyard shares surged 92% in last 3-months only, rose 248% year-to-date, rallied 619% in last 1-year only, and surged 1290% in last 2-years. In last 3-years, Cochin Shipyard Ltd shares rose 1176%.

Cochin Shipyard Dividend: The company in its BSE filing issued as on May 24, 2024, "Board has recommended a final dividend of Rs. 2.25 per equity share of face value of Rs. 5 each, for the financial year 2023-24 subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of its declaration at the AGM."

Should You Buy Cochin Shipyard Shares? Brokerage firm LKP Securities recommended sell call to Cochin Shipyard shares with target price of Rs 2300 and stop loss at Rs 2460. According to the analyst, Cochin Shipyard slipped below the recent consolidation on the daily chart. Cochin Shipyard shares declined below 21 EMA on the daily timeframe. Additionally, the RSI is in a bearish crossover. Based on these technical set up, on the lower end, the stock might move down towards Rs 2,300. Support is placed at Rs 2,460.

Meanwhile, three analysts out of 5 tracking Cochin Shipyard shares have recommended buy call, one assigned hold call and another assigned sell call, as per Bloomberg data.

Cochin Shipyard Stock Split History: Cochin Shipyard shares traded ex-split in the proportion of 2:1 on January 10, 2024. It was the maiden stock split that the PSU declared to make shares affordable.

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 has been picked from the brokerage report of LKP Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.