One of India's top public sector projects, Cochin Shipyard Ltd. (CSL), has recently attracted a lot of interest from the stock market. The company's share price jumped 12% to an all-time high of ₹2,100 on the BSE after its outstanding Q4 FY24 performance and a dividend announcement.
Highlights of Q4 FY24 Performance
- Net Profit: CSL's net profit for Q4 FY24 was ₹258.9 crore, a startling 558% year-over-year growth from ₹39.3 crore in the same period the year before.
- Revenue: From ₹600 crore in Q4 FY23 to ₹1,286 crore, the company's operating revenue more than doubled, increasing by 114%.
- EBITDA, or earnings before interest, taxes, depreciation, and amortization, was ₹288.3 crore, which was a substantial improvement over the ₹67.1 crore loss from the same time the previous year.
Notice of Dividends
The Board of Directors of CSL suggested a final dividend of ₹2.25 per equity share for FY24 in addition to the strong financial performance. This is on top of the ₹3.50 and ₹8 per share interim dividends that were announced earlier in the fiscal year.
Performance of Stocks
The stock of CSL has grown remarkably: Business Today
- 6-Month Return: An increase of almost 240%.
- Year-to-date (2024): A spike of about 180%.
- Standard Business
- One-Year Return: A remarkable increase of 683.72%.
With a current Relative Strength Index (RSI) of 84.6, the stock is in the overbought zone.
Developments in Strategy
CSL has taken the initiative to obtain important contracts:
- A contract worth ₹1,000 crore was obtained by the Defence Ministry to refurbish and dry dock a sizeable Indian naval vessel.
- Online Stock and Share Trading with Upstrokes
- Order from European Client: A Hybrid Service Operation Vessel (SOV) worth between ₹500 and ₹1,000 crore was ordered, with completion anticipated by the end of 2026.
Considering an investment Should I buy, sell, or hold?
Purchase
- Excellent financial results with notable increases in revenue and profit.
- NDTV Profit
- strong order book and strategic agreements that predict future sources of income.
- Regular dividend payments increase the wealth of shareholders.
Hold on
A possible short-term correction is indicated by the stock's current position in the overbought zone.
To take advantage of long-term growth opportunities, investors can think about holding.
Market
The significant recent advances may offer short-term investors a chance to make money.
conclusion
Cochin Shipyard is a formidable competitor in the shipbuilding and defense industries thanks to its impressive Q4 performance and strategic efforts. Even if the stock has appreciated significantly, prospective investors should think about their risk tolerance and investment horizon. It is advised to speak with a financial counselor in order to match investment choices with your financial objectives.