This PSU stock is trending on October 3

The shares surged 8.6% on the day. 

On September 3, the market is trading in the red. At 12:34 pm, the S&P BSE Sensex is trading at 57047.36. About sectoral performance, Telecom and Healthcare s are the top gainers, while FMCG and IT are among the top losers. Regarding stock-specific action, Cochin shipyard Ltd is among the top gainers. 

The shares of Cochin shipyard Ltd surged 8.6% and are trading at Rs 480.05. The stock opened at Rs 440 and has made an intraday high and low of Rs 487.65 and Rs 437, respectively. 

Cochin shipyard Ltd is a market leader in the construction of all types of vessels, repairs, and refurbishment of all types of vessels, as well as periodic upgradation and ship life extension. The stock is in news as union minister for Ports, Shipping and Waterways, Sarbananda Sonowal announced that Cochin shipyard Ltd will invest Rs 50 crore in startup companies operating in the maritime sector. 

On a consolidated basis, the FY22 sales and net profit stood at Rs 3190 and Rs 587 crore, respectively. As per the FY22 period ending the company has ROE and ROCE of 14.1% and 18%, respectively.  

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 440 crore, a YoY improvement of 33.7%. Similarly, Q1FY23 net profit increased by 53% to Rs 49 crore from Rs 32 crore in Q1FY22.  

The long-term sales and net profit numbers also look good. The company’s 10-year sales and net profit CAGR stood at 9% and 14%, respectively. 

About the shareholding pattern, 72.86% of the stake is owned by the Government of India, 2.75% by FIIs, 4.37% by DIIs, and the rest by 20.02% by non-institutional investors. 

The company has a market capitalisation of Rs 6314 crore and currently is trading at a PE multiple of 9.63x. The stock has a 52-week high and low of Rs 487.65 and Rs 281, respectively.