170% Return In 1 Year: Miniratna Stock To Trade 1:2 Stock Split In 2 Days; Buy?

Cochin Shipyard Ltd.'s shares began higher on the NSE on Monday at Rs. 1,369 per share and were trading at Rs. 1,346.20 at the close, down 1.21% from the previous finish in the morning trade. The company in question is classified as Miniratna and the yard boasts the most advanced facilities of its kind in India, with the capacity to build and repair vessels up to 1.1 million tonnes. Cochin Shipyard is one of Dalal Street's multibagger stocks; in a year, the Miniratna company has returned 168% to its shareholders. This week, however, will be particularly important for the stock since it will trade ex-split on January 10th for a 1:2 sub-division.

Cochin Shipyard Stock Split

"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," said Cochin Shipyard in a stock exchange filing.

Cochin Shipyard News

The Ministry of Defence and Cochin Shipyard Limited recently inked a Rs 488.25 crore contract for the repair and upkeep of systems and equipment on board naval vessels. Based on the Ministry of Defence's approval of necessity (AoN), the contract work has already started in Q2FY24 and is anticipated to be finished by Q1FY25, as the company reported two weeks ago.

Cochin Shipyard Financials

In comparison to the same time of FY23, when the firm posted a net profit of Rs. 112.79 crore, the September 2023 quarter's profit of Rs. 181.5 crore represented a 61% jump. In comparison to the same period of FY23, when revenue was Rs 683.2 crore, it jumped by 48% YoY to Rs 1,011.7 crore in Q2FY24. While the margin shrank by 80 basis points to 19% from 19.8% in Q2FY23, EBITDA jumped by 41.2% to Rs 191.2 Cr in Q2FY24. The company is yet to declare its Q3FY24 results.

Cochin Shipyard Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, " The current trading price of COCHINSHIP is Rs 1345. The stock has recently consolidated above the Rs 1300 level with a significant increase in trading volume, indicating price stability. If the price manages to close above the Rs 1400 level, it may have the potential to reach short-term targets of Rs 1800. On the other hand, immediate support levels are located at Rs 1330 and Rs 1300. These levels can be considered as opportunities to buy on dips."

"The Relative Strength Index (RSI) currently stands at 61.4 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 1800 in the near future," the analyst stated.

"To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 1280. 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 1800 price target, provided that appropriate risk management measures are in place," Mandar Bhojane added.

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.