Cochin Shipyard shares fall 6% on ex-dividend date, what should investors do?

Shares of Cochin Shipyard slipped over 6% on Wednesday even as the defence firm traded ex-dividend in the current session. The board of the firm announced a second interim dividend of Rs 3.5 per share for the financial year 2025. The board fixed record date on February 12. 

In the current session, the defence sector stock fell 6.30% to Rs 1245 on BSE. Cochin Shipyard’s market cap slipped to Rs 33,990 crore. 

The multibagger stock is trading neither in the oversold nor in the overbought zone, indicates its relative strength index (RSI) at 36.8. 

The stock is amid a major bearish trend as it is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day ,200 day moving averages.

Total 1.59 lakh shares of the firm changed hands amounting to a turnover of Rs 20.24 crore in the afternoon session on BSE. 

The multibagger stock has fallen 17.30% in 2025 and risen 61% in a year. In two years, the stock has risen 440.96%. 

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi said, "Support will be at Rs 1,250 and resistance at Rs 1365. A decisive move above the Rs 1365 level may trigger a further upside of Rs 1,425. The expected trading range will be between Rs 1,350 and Rs 1,425 in the short-term."

Kotak Institutional Equities has assigned a sell call to the stock with a target price of Rs 830 from the earlier Rs 800. 

"A potential partnership to make jack-up rigs, a ship repair facility in Kandla and tie-ups with Korean firms to execute their orders are some initiatives CSL is currently exploring. We revise our FY2025-27E estimates by 13%/3%/(-)7% and FV to Rs 830 We revise our FY2025-27E estimates by 13%/3%/(-)7%, as we increase near-term margin estimates due to the INS Vikramadtiya ship repair order. We raise our Fair Value to Rs 830 from Rs 800, as we roll forward to March 2027. Multiple large defence order wins remain a key risk to our thesis," said Kotak Equities. 

Cochin Shipyard's net profit declined 27.6% to Rs 177 crore in the last quarter against Rs 244 crore profit in the corresponding quarter of the previous fiscal. Revenue climbed 8.6% to Rs 1147.6 crore in Q3 against Rs 1056.4 crore in the corresponding quarter of the previous fiscal. 

Cochin Shipyard's EBITDA slipped 23.4% to Rs 237.4 crore in Q3 against Rs 310.1 crore in the corresponding quarter of the previous fiscal.

The board of directors declared a second interim dividend of Rs 3.50 per equity share of face value of Rs 5 each for the financial year ending March 31, 2025. 

Cochin Shipyard Limited is engaged in the shipbuilding and ship repair business. The company is engaged in the construction of vessels and repairs and refits of all types of vessels including upgradation of ships periodical layup repairs and life extension of ships.