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Cochin Shipyard Ltd Boost 18% After Stock Split

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Cochin Shipyard Ltd experienced a significant Surge of 18.48% in its share price on Wednesday following the ex-stock split trading session. The stock split, converting the face value from Rs 10 to two shares with a face value of Rs 5 each, contributed to this notable increase.

Cochin Shipyard Stock Performance

  • Post the stock split, Cochin Shipyard shares soared to an adjusted one-year high of Rs 802.40, reflecting a robust 20% increase.
  • The company’s shares have witnessed a remarkable rally of over 45% in the last three months and an impressive 212% surge over the past year.
  • As of 2:30 pm, the shares were trading at 18.48%  higher at Rs 792.25 apiece on the BSE.

Trading Volume and Turnover

  • Heavy trading volumes were observed, with 10.24 lakh shares changing hands on BSE, surpassing the two-week average volume of 95,000 shares.
  • The turnover on the counter reached Rs 77 crore, contributing to a market capitalization of Rs 21,109.60 crore.

Defence Sector Favoritism

  • Ashish Chaturmohta, Executive Director and Fund Manager at JM Financial expressed a positive outlook on Cochin Shipyard from the defence sector due to its robust order book.
  • The company recently secured a contract worth Rs 488.25 crore with the Ministry of Defence.

Record Date for Stock Split

Cochin Shipyard fixed January 10, 2024, as the Record Date for the stock split, determining shareholders’ eligibility for the subdivision of one equity share into two.

Operational Updates

Cochin Shipyard provided insights into its ongoing work package, involving the repair and maintenance of naval vessel equipment. The project, initiated in Q2 of FY24, is expected to conclude by Q1 of FY25.

Market Presence and Future Plans

Cochin Shipyard is a prominent shipyard in India, excelling in both commercial and defence shipbuilding and repairs.

The company, with a robust pan-India presence, aims to expand its footprint and enhance the shipbuilding and repair ecosystem across the nation.

Financial Indicators

  •  The company’s stock is currently trading above various simple moving averages, indicating strong market performance.
  •  Cochin Shipyard’s 14-day relative strength index (RSI) stands at 75.77, signifying an overbought condition.
  •   The stock’s price-to-equity (P/E) ratio is 37.74, with a price-to-book (P/B) value of 3.73.

Shareholders and Ownership

As of December last year, promoters hold a substantial 72.86% stake in Cochin Shipyard.

Cochin Shipyard’s recent stock split has led to a remarkable surge in share prices, highlighting positive market sentiment and investor confidence in the company’s future prospects.

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