155% Gain from 52W Low: Miniratna PSU Stock Declares Rs 8/Share Dividend & 2:1 Stock Split: Buy?

Cochin Shipyard Ltd.'s shares closed 0.50% higher at Rs. 1047.20 on Wednesday following the company's announcement of a stock split and an interim declared dividend in addition to its September quarter results. The firm is a leader in the Indian shipbuilding and ship repair sector and has Miniratna status. Ranked among the top ten public sector undertakings in India, Cochin Shipyard is a premier shipbuilding and repair yard.

Cochin Shipyard Dividend

For the fiscal year 2023-2024, the firm has announced an interim dividend of Rs. 8.00 per equity share of Rs. 10 each, fully paid up (80%). The record date for the interim dividend is set for Monday, November 20, 2023. The eligible shareholders will receive the aforementioned interim dividend on or before December 06, 2023.

Since August 6, 2018, 13 dividends have been announced by Cochin Shipyard Ltd as per the data of Trendlyne. Cochin Shipyard has announced an equity dividend of 170.00% at a face value of Rs 10 (i.e., Rs 17 per share) for the fiscal year ended in March 2023. With the current share price of Rs. 1047.20, this translates into a 1.62% dividend yield. The company has a strong dividend history and has paid out dividends on a regular basis over the previous five years.

Cochin Shipyard Stock Split

Subject to shareholder approval, the company's Board of Directors has approved the sub-division/split of the company's 1 equity share of face value of Rs. 10/- each fully paid up into 2 equity shares of face value of Rs. 5/- each fully paid up. The record date for the aforementioned sub-division/split of equity shares will be determined and announced in due course after securing shareholder approval via an electronic postal ballot voting process.
"The Postal Ballot Notice along with the e-voting instructions shall be sent only through e-mail to those shareholders who hold shares as on the cut-off date Friday, November 10, 2023 and whose email address is registered with the Company's RTA/ Depository Participants (DP)," said the company in a stock exchange filing.

Cochin Shipyard Results

Cochin Shipyard reported a 61 per cent rise in net profit to Rs 181.5 crore for the quarter that ended in September compared to Rs 112. 79 crore for the same period the previous year. The firm generated revenue from operations of Rs 1011.71 crore in Q2FY24, up 48% from Rs 683.18 crore in Q2FY23. The company's margin shrank by 80 basis points to 19% from 19.8%, but EBITDA jumped by 41.2% to Rs 191.2 Cr during the quarter under review.

Cochin Shipyard Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "The current trading price of COCHINSHIP is Rs 1042.25. The stock has recently broken out of the daily trend line with a significant increase in trading volume, indicating strong momentum in the stock. If the price manages to close above the Rs 1075 level, it may have the potential to reach near-term targets of Rs 1160 and Rs 1300. On the other hand, immediate support levels are located at Rs 960 and Rs 940."

"The Relative Strength Index (RSI) currently stands at 60.15 and is trending upward, indicating increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover, moving out of the oversold region. These technical indicators, when considered together, suggest that COCHINSHIP has the potential to reach a target price of Rs 1300 in the near future," the analyst added.

"To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 940 and consider buying on dips around Rs 980 and Rs 990 levels. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, COCHINSHIP appears to present an appealing buying opportunity for those aiming for a Rs 1300 price target, provided that appropriate risk management measures are in place," recommended Mandar Bhojane.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.