COCHIN SHIPYARD has lately bagged the largest ever shipbuilding contract from the Indian Navy to make six coming generation bullet vessels, which has significantly strengthened the company‘s book order value.
Cochin Shipyard, the country’s largest shipbuilding and maintenance company, has reached new heights today. Its shares surged nearly 20% intraday, reaching the upper circuit. While there was a slight dip in prices due to profit-taking, buyers quickly stepped in, pushing the shares back to the upper circuit. At the end of the day, Cochin Shipyard’s shares closed at a robust 1146.15 rupees on the BSE, hitting the upper circuit. The company’s full market capitalization now stands at 15,076.50 crore rupees.
Why the Rally in Cochin Shipyard Shares?
The company has secured the biggest shipbuilding contract for building six missile vessels for the Indian Navy, significantly boosting its order book. In its annual report for the fiscal year 2023, the company mentioned that the government is focusing on improving ports and water infrastructure within the country. This presents ample opportunities for Indian shipyards, and Cochin Shipyard is well-positioned to benefit from these developments. The company also disclosed that it has secured an order in partnership with the Netherlands-based firm IHC for a trailing suction hopper dredger with a capacity of approximately 12,000 cubic meters from the Dredging Corporation of India (DCI). Cochin Shipyard is hopeful of receiving more such orders in the future.
Buying Spree Driven by Dividends
Cochin Shipyard announced on September 5th that it will pay a final dividend of 3 rupees per share for the fiscal year 2022-23, with a record date of September 21, 2023. The Board of Directors has approved this dividend declaration. Subject to approval at the Annual General Meeting (AGM), shareholders will receive this dividend by October 27, 2023.
The surge in Cochin Shipyard’s shares can be attributed to both the strong order pipeline, driven by critical defense contracts, and the prospect of receiving dividends. As the company continues to secure significant contracts and reward its shareholders, it remains a promising player in the Indian shipbuilding industry. Investors are keeping a close watch on Cochin Shipyard as it sails into a bright future.