Shares of Cochin Shipyard Ltd are in focus today after the PSU defence firm said it has inked a contract worth Rs 488.25 crore with the Ministry of Defence (MoD). The work package includes repair and maintenance of the equipment and systems onboard the naval vessel.
The work on the same has already started during Q2 of FY24 based on the Approval of Necessity (AoN) from MoD, and is expected to be completed by Q1 of FY25, the firm said in a communication to bourses.
On Wednesday, the stock closed lower at Rs 1223.95 on BSE. Cochin Shipyard shares fell to an intraday low of Rs 1201.20 amid the market crash.
Earlier, Cochin Shipyard stock opened higher at Rs 1316.10 on BSE. Total 1.30 lakh shares of the firm changed hands amounting to a turnover of Rs 16.37 crore on BSE. Market cap of the firm fell to Rs 16,099 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 54.9, signaling the stock is neither overbought nor oversold on technical charts. Cochin Shipyard has a one-year beta of 0.3, indicating low volatility during the period. Cochin Shipyard shares are trading higher than the 20 day, 50 day, 100 day, 200 day moving averages.
Cochin Shipyard's consolidated net profit for the September quarter rose 61% to Rs 181.52 crore compared with Rs 112.79.45 crore in the corresponding quarter last year. Revenue from operation, on a consolidated basis, jumped 48% to Rs 1,011.71 crore compared with Rs 683.18 crore in the same quarter last year. Other income rose to Rs 87.56 crore for the quarter against Rs 61.46 crore in the same quarter last year. Also, Cochin Shipyard said its board has approved an interim dividend of Rs 8 per share of Rs 10 each fully paid-up for the financial year 2023-2024 and fixed the record date for the same as Monday, November 20.
The board also approved a split of one of its equity share of face value of Rs 10 into two shares of face value of Rs 5 each, according to an exchange filing.
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