505% Returns in 1 Year: Multibagger PSU to declare FY24 dividend, Q4 results soon; stock hits 14% upper circuit
- Cochin Shipyards shares hit 14 per cent upper circuit at ₹1,696.80 apiece on the BSE ahead of announcing its Q4FY24 results and FY24 dividend.
Cochin Shipyards Share Price: Shares of India's largest shipbuilding and maintenance company rallied 14 per cent to hit a lifetime record-high mark during intra-day on Tuesday, May 21, three days ahead of announcing its January-March quarter results for fiscal 2023-24 (Q4FY24) results. The leading public-sector undertaking (PSU) will also declare a final dividend for FY24 on Friday, May 24, according to a regulatory filing to the stock exchanges.
Earlier this month, Cochin Shipyards bagged an order from a European client, for the design and construction of a hybrid service operation vessel (SOV) with an option for two more such vessels. The vessel is equipped with hybrid battery systems to improve the energy efficiency and reduce the carbon foot prints.
The vessel is designed and built for the service, maintenance and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand. The project is expected to be completed by the end 2026, said Cochin Shipyards in its exchange filing.
The order has been categorized as 'large', falling within the ₹500-1000 crore range; however, the precise value of the deal was not revealed in the filing.
Cochin Shipyards Q4 Results Date
The defence PSU will announce its Q4FY24 results and a final dividend for FY24 on Friday, May 24. ‘’We wish to inform that a meeting of the board of directors of the company is scheduled to be held on Friday, May 24, 2024 to:
(a) consider and approve the standalone and consolidated audited financial results of the company for the quarter and year ended March 31, 2024; and
(b) consider the recommendation of final dividend to the equity shareholders of the company for the financial year 2023-24,'' said Cochin Shipyards last week in a regulatory filing to the stock exchanges.
Cochin Shipyards Share Price Trend
Shares of Cochin Shipyards opened at ₹1,489 and gained 14.95 per cent to hit a fresh 52-week high of ₹1696.80 before settling 10.30 per cent higher at ₹1,636.70 apiece on the BSE. According to Trendlyne data, Cochin Shipyards has given better returns to investors compared to Nifty 50 and Sensex in the last one year.
In the past one month, Cochin Shipyards gave 49.32 per cent returns, against 1.73 per cent and 1.78 per cent returns by Nifty 50 and Sensex respectively. In the last one year, Cochin Shipyards has given a massive 505.36 per cent returns to investors as against 23.76 per cent and 19.8 per cent returns by Nifty 50 and Sensex respectively.
Brokerages bullish on Cochin Shipyard
For the quarter ending March'2024, Antique Stock Broking expect Cochin Shipyard to report revenue growth of 64 per cent year-on-year to ₹945 crore. The earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to rise to ₹170 crore during Q4Fy24 compared to EBITDA loss of ₹66 crore in the year ago quarter.
Cochin Shipyard stock is rated 'buy' by domestic brokerage ICICI Direct Research, with a target price of ₹1,055. The brokerage's investment justification is based on two elements: the company's outstanding skills in shipbuilding and ship repair; the execution of picking up a sizable order backlog to spur growth; and the durability of the order inflow possibility.
“Over FY24–26E, we expect that Cochin Shipyard will see notable YoY growth in revenues and profitability, driven by a pick-up in execution in both categories and an increase in the share of the margin-accretive ship-repair segment. In contrast to the de-growth seen over FY20–23, we project revenue and profit after tax (PAT) to expand at around 23 per cent and roughly 36 per cent CAGR, respectively, over FY23–26E," said ICICI Direct Research in its report.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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