1:2 Split, 70% Dividend YTD: Defence PSU Stock Rises 13% In 1-Day, Wins Massive New Order

Defence PSU stock, Cochin Shipyard zoomed by over 13% in a single-day after winning massive new order. The stock ended at Rs 1342.35 apiece, up by 12.33% on Tuesday with a market cap of Rs 35,314.65 crore on BSE.

Cochin said that it has bagged a large order from a European Client, for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels.

The vessel is equipped with hybrid battery systems to improve the energy efficiency and reduce the carbon foot prints. The vessel is designed and built for the service, maintenance and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand. The project
is expected to be completed by the end 2026.

The order value is in the range of Rs 500 to Rs 1,000 crore.

YTD, Cochin shares have been on the bulls-side, while it carried a 1:2 stock split and 70% dividend payout so far in the current year.

Cochin turned ex-split on January 10, 2024, for a ratio of 1:2. It means that the face value of Cochin Shipyard which at Rs 10 was halved to Rs 5 each. This led to an increase in a number of shares and improved liquidity in Cochin.

Also, in February, Cochin turned ex-dividend for second interim dividend of Rs 3.5 per share having a face value of Rs 5 each fully paid up (70%) for the financial year 2023-24. Earlier, Cochin turned ex-dividend on November 20, 2023, for the first interim dividend of 80% amounting to Rs 8 per share for FY24. In FY23, the company paid dividends up to 170% amounting to Rs 17 per share.