2:1 Split, Rs 14.50/Share Dividend: Multibagger Defence PSU Unstoppable, Buy For TP Rs 1115: PL

Shares of Cochin Shipyard have been witnessing sharp rally in the last few months. Cochin Shipyard shares have already jumped 112% in last 6-months and 61% year-to-date. Leading brokerage has recommended buy call with target price of Rs 1115 apiece. RSI of the stock has been soaring and currently stands at 68.3. RSI below 30 is considered oversold and above 70 overbought. The defence PSU already shelled out Rs 14.50 per share dividend in last 12 months span and underwent stock split in the ratio of 2:1 in 2024. Check more details here:

Prabhudas Lilladher Recommends Buy Call: Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher said, Cochin Shipyard formed a big bullish candle formation on the daily chart after a short consolidation phase to breach above the earlier peak of Rs 945. It soared an all-time high of Rs 976 level. The positive bias has boosted and with RSI also soaring and reflected a trend reversal to signal a 'buy' for next targets of Rs 1,020 and Rs 1,115 levels in coming days. The major support zone would be near the significant 50-EMA level of Rs 840.

CSL Inks Master Ship Repair Agreement with US Navy: The BSE filing of the company dated April 6 stated, "We would like to inform that Cochin Shipyard Limited (CSL) has signed the Master Shipyard Repair Agreement (MSRA) with United States Navy. The MSRA is a non-financial agreement and is effective from April 05, 2024. This will facilitate repair of US Naval vessels under Military Sealift Command in CSL." CSL has been qualified for entering into the Master Shipyard Repair Agreement (MSRA) after a detailed evaluation process and capability assessment by the US Navy - Military Sealift Command, added the filing.

Cochin Shipyard Dividend History: Cochin Shipyard announced a total of 15 dividends since August 6, 2018. In last 1-year, Cochin Shipyard announced an equity dividend amounting to Rs 14.50 per share. If current share price of Rs 1096.55 is taken into aspect, Cochin Shipyard gives investors a dividend yield of 1.32%. Adjusting for Bonus/Splits the dividend yield is 0.82%, according to Trendlyne data.

Cochin Shipyard Share Performance & Return: The 52-week high price of the defence PSU is Rs 1170.05 per share (08/04/2024) and 52-week low price is Rs 234.53 apiece (25/05/2023), respectively. The company's market cap stood at Rs 28,865.22 crore. The defence PSU has been maintaining an upward rally for last couple of months. In last 6-months only, Cochin Shipyard has delivered shareholders with multibagger returns of 112%, jumped 346% in last 1-year, and an outstanding 525% in last 2-years. In last 3-years, the Cochin Shipyard stock gained 515%.

Cochin Shipyard Technical Outlook: Score is 76.31 indicating stock is technically strong. Stocks with score above 70 are considered as technically strong. MFI is 85.8, MFI above 80 is considered strongly overbought. This implies that stock may show pullback. Number of FII/FPI investors decreased from 153 to 145 in December 2023 quarter. Mutual Funds have decreased holdings from 1.93% to 1.87% in December 2023 quarter. Number of MF schemes increased from 7 to 9 in Dec 2023 quarter. Nippon Life India Trustee Ltd-A/C Nippon India Nifty Small Cap 250 Index Fund has stake in the defence psu with 2,314,881 (1.76%), according to Trendlyne.

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 Prabhudas Lilladher. 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.