This is part of the Government’s plans to strategically bolster India’s maritime capabilities, encompassing ports, shipping, and waterways, The Economic Times reported.
Shares of Cochin Shipyard witnessed a steady decline following a stock split which saw the counter getting subdivided into two shares on January 10, Wednesday. It had ended the session at Rs 802.80 on the NSE and corrected nearly 4% over the next two trading sessions till Friday.
The company had announced a sub-division of its equity share from a face value of Rs 10 each to a face value of Rs 5 each. On December 14, 2023, in a regulatory filing, the company informed the exchanges that January 10 had been decided as the date of record for determining the eligibility of shareholders for the sub-division/split of existing equity shares.
Since Monday, Cochin Shipyard has rallied over 16%. Today’s price action has dragged the stock in a strongly overbought zone with momentum indicator MFI hovering near 83 mark while RSI around 70 according to Trendlyne data. A number above 70 is considered as overbought while below 30 is seen as oversold. The Cochin Shipyard shares are currently trading above their 50-day and 200-day simple moving averages.
Shares of this PSU defense stock have given multibagger returns of 247% over the past 12 months which is a significant outperformance over the returns given by Nifty during this period.
Last month, the company had said that it signed a contract with the Ministry of Defence on December 19, for a value of Rs 488.25 crore for repair and maintenance of the equipment and systems onboard the naval vessel.Cochin Shipyard has been the premier shipyard in India for both commercial and defense shipbuilding and repairs. The yard with its pan India presence is focusing on expanding its foot prints and developing a larger ecosystem for ship building and repairs across the nation.
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