Trade Radar: PSU Stock Gives Consolidation Breakout; Time To Buy For TP Rs 1185?

As of today's closing session, Cochin Shipyard Ltd. has a market capitalization of Rs 25,908.20 Cr, making it a large-cap business in the capital goods category. One of India's top shipbuilding and repair yards is Cochin Shipyard. It is a Miniratna company ranked among the top 10 public sector organisations in India. After hitting a new 52-week high of Rs 997.75 on Tuesday, the shares of Cochin Shipyard wrapped up 1.66% higher at Rs 984.80 apiece. The stock had a surge following the brokerage Axis Securities' buy call, which was issued following a consolidated breakout for a target price of Rs. 1110-1185.

Cochin Shipyard Share Price Target

Buy range: 955-937, Target: 1110-1185, Trend Reversal: 865, Gain: 17%-25%

"The stock broke above a 'Consolidation Zone' between the 933-750 range on a daily chart with a strong bullish candle, indicating a potential continuation of the medium-term uptrend following eight weeks of consolidation. The increased volume activity observed at the breakout further underscores a surge in market participation, enhancing the significance of the breakout. The stock is maintaining a higher high-low pattern in the medium term and holding above an upward sloping trendline, indicating an uptrend in the medium term. The daily strength indicator RSI is in a bullish mode, holding above its reference line and the 50 mark, indicating a positive bias in the stock. The stock consolidated within a 200-point range, and post-breakout, our target will be set at 1110-1185," said Axis Securities in a note.

Cochin Shipyard News

"Pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended, and in accordance with the Code of Internal Procedures and Conduct for Prohibition of Insider Trading in Dealing with the Securities of Cochin Shipyard Limited (CSL) ("CSL Insider Trading Code"), it has been decided that, the Trading Window for dealing in the securities of the Company will remain closed for all Designated Persons (as defined in the CSL Insider Trading Code) from April 01, 2024 till 48 hours after the financial results for the quarter and financial year ended March 31, 2024, is made public," said the company in a regulatory filing.

Cochin Shipyard Dividend Updates

At their meeting held on January 30, 2024, the Board of Directors of Cochin Shipyard Limited (CSL) announced the 02nd Interim Dividend, which amounts to Rs. 3.50 per equity share with a face value of Rs. 5 and is fully paid-up (70%) for the fiscal year that ends on March 31, 2024. Cochin Shipyard has announced an equity dividend of 170.00%, or Rs 17 per share, for the fiscal year ended in March 2023. This generates a dividend yield of 0.86% at the current share price of Rs 984.80. For the past five years, the firm has regularly handed out dividends and has a strong dividend track record. Since August 6, 2018, Cochin Shipyard Ltd. has announced 15 dividends, according to Trendlyne statistics.

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.