2:1 Stock Split, Rs 8/Share Dividend: Buy Multibagger PSU Stock, TP Rs 1340: ICICI Direct

Brokerage firm ICICI Direct has recommended buy call to mid-cap defence stock Cochin Shipyard Ltd with target price of Rs 1340 per share. Last trading price of Cochin Shipyard shares is Rs 1166.50 per share with intraday fall of 3.18%. If you buy Cochin Shipyard stock at the last trading price, you can likely gain of 14.87%. The analyst has given a target time of 6 to 12 months when the stock can achieve the target price of Rs 1340 apiece.

According to the brokerage firm, "order pipeline remains strong in defence and commercial ship-building and ship-repair segments including exports. About Rs 13000 crore worth of ship-building contracts are in pipeline; tenders expected to be floated in medium term. Apart from these, Rs 84000 crore worth of orders are in RFP stage as per the management."

Cochin Shipyard Traded Ex-Dividend: Cochin Shipyard Traded Ex-Dividend For Rs 8/- Per Share Dividend: According to the BSE filing of the company dated November 7, 2023, "Declared an interim dividend of Rs. 8.00 per equity share of Rs. 10 each fully paidup (80%) for the financial year 2023-24. Fixed Monday, November 20, 2023 as the Record Date for the aforesaid interim dividend.

Cochin Shipyard To Set Record Date For 2:1 Stock Split: According to the BSE filing of the company dated November 7, 2023, "Approved the 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, subject to shareholders approval."

Cochin Shipyard Stock Performance & Return Over Years: The stock's 52-week high price is Rs 1258.00 per share and 52-week low price is Rs 411.00 per share, respectively. The company has a market capitalisation of Rs 15,344.19 crore. Cochin Shipyard shares offered return of 134% in last 6-months, gained 120 year-to-date, soared 74% in last 1-year, and offered shareholders rally of 241% in last 2-years. In last 3-years, Cochin Shipyard shares surged 215% and gained 210% in last 5-years.

Cochin Shipyard Ltd Financials: The defence company for the quarter ended September declared a rise of approximately 61% in its net profit to Rs 181.5 crore as against Rs 112.79 crore in the corresponding period of last year. Its revenue from operations for the quarter under review declared at Rs 1011.71 crore, up 48% as against Rs 683.18 crore in the similar quarter of last year. The company's other income soared to Rs 87.56 crore for the quarter under review as against Rs 61.56 crore in the similar quarter of preceding year. Its EBITDA surged 41.2% to Rs 191.2 crore and margin narrowed by 80 basis points to 19% from 19.8%. Growth significantly came from the ship building and repair segment that soared by 48% from last year.

Valuation: According to ICICI Direct, "We expect CSL to witness significant YoY growth in revenues & profitability over FY24-25E, led by execution pick-up in both the segments and increasing share of margin accretive ship-repair segment. We estimate revenue, EBITDA and PAT to grow at ~34%, ~78% and ~52% CAGR respectively over FY23-25E as against the de-growth seen over FY20-23. Valuations look attractive considering the multiple growth drivers. We value CSL at ₹ 1340 i.e. 25x FY25E P/E."

About: 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, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.