1:2 Split, Rs 9.75 Dividend YTD; Zero-Debt PSU Stock Hits 5% Upper Circuit; Right Time To BUY?

Cochin Shipyard, which recently turned ex-dividend, has touched 5% upper circuit on November 25, after winning a major deal with a US company. Upper circuit means that there were several buyers but no sellers on this day in Cochin Shipyard. The consensus recommendation on the stock is BUY. YTD, the stock has rewarded investors with 1:2 stock split and up to Rs 9.75 dividends in three ranges.

Cochin Shipyard was incorporated in the year 1972 as a fully owned Govt of India company. In the last three decades, the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India.

It can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has delivered two of India's largest double-hull Aframax tankers each of 95,000 DWT. CSL has secured shipbuilding orders from internationally renowned companies from Europe & Middle East and has been nominated to build the country's first indigenous Air Defence Ship. The shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of all types of ships including the upgradation of ships of the oil exploration industry as well as periodical layup repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant ships of SCI & ONGC.