2:1 Stock Split, Rs 3.50/Share Dividend: ICICI Direct Has "BUY" On Multibagger PSU, TP Rs 1050

Large cap company from the Defence sector Cochin Shipyard Ltd shares today settled marginally lower (0.29%) to Rs 871.75 per share. The PSU stock traded ex-split in the ratio of 2:1 earlier this year on January 10, 2024. After trading ex-split, Cochin Shipyard shares soared nearly 27.91%. Cochin Shipyard share gained 319% in last 1-year. Meanwhile, brokerage firm ICICI Direct has recommended buy call to Cochin Shipyard shares with target price of Rs 1055 per share. More details about the PSU below:

ICICI Direct Suggests Buy Call: According to the latest brokerage report of ICICI Direct, "valuations look attractive considering the multiple growth drivers. We value Cochin Shipyard at ₹1,055 i.e. 36x FY26E P/E." The analyst highlighted two factors while assigning buy call to Cochin Shipyard namely its outstanding skills in shipbuilding and ship repair, execution of picking up strong order backlog to boost growth, and durability of order inflow likelihood.

Cochin Shipyard Shares Performance: The 52-week high price of Cochin Shipyard shares on BSE is Rs 944.65 per share and 52-week low price is Rs 208.05 per share, respectively. The company's market capitalisation is Rs 22,934.07 crore. Cochin Shipyard shares surged 65% in last 6-months, gave return of 318% in last 1-year, and rallied 391% in last 3-years. In last 5-years, Cochin Shipyard stock zoomed 340%.

Cochin Shipyard Dividend History: The multibagger PSU announced 15 dividends since August 6, 2018. In last 12 months, Cochin Shipyard announced an equity dividend of Rs 14.50 per share. If the current share price of Rs 871.8000, Cochin Shipyard Ltd.'s dividend yield is 1.66%. Adjusting for Bonus/Splits the dividend yield is 1.03%.

Cochin Shipyard Stock Split History: Cochin Shipyard shares traded ex-split in the ratio of 2:1 earlier this year on January 10, 2024. It was the maiden stock split that the PSU declared to make shares affordable. 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 Ltd Latest Financials: The leading PSU firm for the quarter ended September announced a surge of approximately 61% in its net profit to Rs 181.5 crore as compared to Rs 112.79 crore in the corresponding quarter of last fiscal. Cochin's revenue from operations for the quarter under review declared 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 soared 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.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct. 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.