Miniratna CPSE Company To Pay Rs. 3.50 Interim Dividend Soon: Buy The Stock?

As of Wednesday's closing session, Cochin Shipyard Ltd. has a market capitalization of Rs 23,010.36 Cr, making it a large-cap firm in the capital goods category. With a Miniratna classification from the Indian government, Cochin Shipyard is one of the top shipbuilding and repair yards in the country. The company's financial results for the quarter ending December 31, 2023, as well as the announcement of a second interim dividend of 70% for the fiscal year 2023-2024, have put the stock in focus.

Cochin Shipyard Dividend

The company has declared 02nd interim dividend of Rs. 3.50 per equity share of Rs. 5/- each fully paid-up (70%) for the financial year 2023-24 and has fixed Monday, February 12, 2024 as the record date for the aforesaid interim dividend, as per a stock exchange filing.

"The Board of Directors of the Company have recommended an interim dividend of Rs 3.50 per equity share of face value of Rs.5/- (Post sub-division) at the Board Meeting held on January 30, 2024. This is in addition to the interim dividend of Rs 8.00 per equity share of face value of Rs 10/- (pre sub-division) which was recommended by the board in the Board Meeting held on November 07, 2023.

The Shareholders of the Company on December 13, 2023 approved the sub-division of each equity share of the Company of face value of Rs. 10/- each fully paid up into 2 (Two) equity shares of face value of Rs. 5/- each fully paid up. The record date for the said sub-division was fixed as January 10, 2024," said Cochin Shipyard in a statement.

Cochin Shipyard Financials

The company's third quarter ending December 31, 2023, saw a net profit of Rs 244.4 crore. According to a regulatory statement by the firm, Cochin Shipyard reported a net loss of Rs 110.4 crore for the same period in the previous year. Compared to the same time in the previous fiscal year, when it was Rs 641.6 crore, the business's revenue from operations increased by 64.7% to Rs 1,056.4 crore in Q3FY24.

Cochin Shipyard Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said the current trading price of COCHINSHIP is Rs 882. The stock has recently consolidated above the Rs 850 level with a significant increase in trading volume, indicating price stability. If the price manages to close above the Rs 943 level, it may have the potential to reach short-term targets of Rs 1100. On the other hand, immediate support levels are located at Rs 820 and Rs 790. These levels can be considered as opportunities to buy on dips.

The Relative Strength Index (RSI) currently stands at 65 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 1100 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 790. 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 1100 price target, provided that appropriate risk management measures are in place.

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.