1:2 Stock Split: Miniratna Shipping Stock To Reward 70% Dividend, Record Date Next Week; Gives 325% Returns

Cochin Shipyard has corrected this week, however, the stock is in focus for its upcoming dividend payout to the tune of 70%. Investors cashed in gains as Cochin shares have already factored in its fundamentals. This is despite the share split of 1:2 last month that Cochin underwent. Cochin recorded significant growth in Q3 for FY24 as well. The stock price will continue to be in focus as its record date for interim dividend nears.

Cochin Shipyard Share Price:

The Miniratna stock ended at Rs 874.25 apiece, down by 1.12% on BSE with a market cap of Rs 22,999.84 crore. Despite the latest drop, the stock price is still higher by a whopping 325.42% from its 52-week low.

In six months, Cochin has given nearly 163% returns. In a year, the stock rallied by 254.40%.

Cochin Shipyard Dividend:

Cochin has declared a 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. For the same, Cochin fixed Monday, February 12, 2024, as the Record Date for determining eligible shareholders. This will also be its ex-dividend date.

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.

Its current dividend yield is at 0.97%.

Cochin Shipyard Earnings:

On a consolidated basis, the company earned a net profit of Rs 244.38 crore in Q3FY24, higher than Rs 110.40 crore in Q3 of FY23 and Rs 181.62 crore in Q2FY24.

Meanwhile, revenue from operations stood at Rs 1,056.39 crore in the third quarter of the current fiscal, as against revenue of Rs 641.65 crore in Q3FY23 and Rs 1,011.71 crore in Q2FY24.

Cochin Shipyard Stock Split:

For the first time, Cochin shares split was in January this year. The stock sub-divided into the ratio of 1:2 --- which meant that its share price having a face value of Rs 10 was split into Rs 5.

The share split was done on January 10, 2024.

Cochin Shipyard New Orders:

Cochin has continued to bag hefty orders. Last week, on February 2nd, it announced that the company entered into a contract with the Indian Navy for undertaking Medium Refits of Two Indian Naval Vessels. This Multiple Refit Contract was signed today, for a value of around Rs150 crore. The scope includes dry-docking and retrofit as well as Upgradation of equipment on board the ships.

Meanwhile, last month, on January 31, Cochin bagged a new order from a European Client, for the design and construction of one no. hybrid Service Operation Vessel (SOV). The total project cost for the firm order is approximately Rs 500 crore. 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.

Cochin shipyard is one of the leading shipbuilding & repair yard in India, which has an infrastructure that combines economy, scale, and flexibility. CSL also has an exclusive area set for offshore construction and future expansion. As one of the India's top 10 public sector undertakings, CSL has been rated excellent by the Government of India, four times in a row for achieving the targets set for the yard under the MOU system.

With specialised industry knowledge and superior resources, CSL has constantly unfolded new levels of excellence in shipbuilding and ship repair. As a technology leader in India, CSL has adopted the Japanese Integrated Hull Outfitting and Painting system (IHOP) for its new construction, which gives a clear edge to CSL in the field of fabrication of commissioning of accommodation modules & topside modification.