Cochin Shipyard's stock saw a significant surge of nearly 6 percent on August 9, following the company's impressive financial results for the quarter ending June 2024.
The state-run company's net profit for Q1FY25 rose by a remarkable 77 percent, reaching Rs 174.2 crore compared to Rs 98.6 crore in the same period of the previous year.
This growth in profit was accompanied by a substantial increase in revenue, which jumped 62.1 percent year-on-year (YoY) to Rs 771.47 crore.
On the operational front, Cochin Shipyard's EBITDA, or earnings before interest, tax, depreciation, and amortization, soared 125 percent YoY to Rs 177.3 crore.
The EBITDA margin also improved, standing at 23 percent in Q1FY25, up from 16.5 percent in the corresponding quarter of the previous fiscal year.
Additionally, the cost of materials consumed by the company nearly doubled to Rs 316.6 crore during this period.
Cochin Shipyard, a Miniratna public sector undertaking (PSU), is primarily involved in shipbuilding and ship repair, serving both domestic and international markets.
As of June 2024, the promoter's stake in the company remained steady at 72.9 percent.
Foreign institutional investors (FIIs/FPIs) slightly reduced their stake from 5.2 percent to 4.9 percent, while mutual funds increased their holdings from 2.1 percent to 2.2 percent.
By 9:24 am on August 9, Cochin Shipyard shares were trading 5.7 percent higher at Rs 2,435.20 on the National Stock Exchange (NSE).
Year-to-date, the stock has skyrocketed by 255 percent, more than tripling investors' money. Over the past year, the stock has delivered extraordinary returns of around 635 percent.
The stock is expected to continue its upward trend, with a recommendation to buy above Rs 2,400, setting a stop loss at Rs 2,300 and aiming for a target of Rs 2,700.
