Shares of Cochin Shipyard (CSL) have seen steady growth this year and doubled in the last six months, from ₹315 to an all-time high of ₹672.75 intraday today. The stock of the shipbuilding company has rallied 15% in the last three sessions despite posting weaker-than-expected earnings for the September quarter (Q2 FY23). The state-owned company has also declared an interim dividend of 70% or ₹7 per equity share of ₹10 each for the financial year 2022-23, which is 17% higher than last year's comparable amount of ₹6 apiece.

On Monday, shares of Cochin Shipyard opened 1.3% higher at ₹647.90, against Friday’s closing price of ₹639.55 on the BSE. Extending opening gains, the smallcap stock gained as much as 5.2% to hit a new record high of ₹672.75, driven by a surge in volume trade. As many as 1.86 lakh crore changed hands over the counter as compared to the two-week average volume of 1.63 lakh stocks, whereas market capitalisation rose to ₹8,682 crore.

The CSL share price breached its previous high of ₹598.90, touched on November 24, 2017. The stock trades 140% higher than its 52-week low of ₹281 on March 8, 2022. The stock has delivered a steady return of 77% in the past one year, while it has risen 85% in the calendar year 2022 (year-to-date basis). In the past one month, the counter has surged 26%, while it has climbed 9% in a week.

Cochin Shipyard, which made its stock market debut on August 12, 2017, currently trades 50% higher than its initial public offering (IPO) price of ₹432. The stock has given 19% returns in the last five years and 63% over a period of 3 years.

For the July-September quarter of the current fiscal (Q2 FY23), Cochin Shipyard posted a 14% drop in consolidated profit at ₹112.79 crore as against ₹131.30 crore in the corresponding quarter of the previous fiscal. The consolidated income of the company increased to ₹744.88 crore from ₹738.01 crore in the year-ago period.

The board of the company has approved an interim dividend of ₹7 per equity share for fiscal 2022-23. The company has fixed November 22 as the record date for the interim dividend.

Formed in 1972, Cochin Shipyard is a government-owned Miniratna Central Public Sector Enterprise under the administrative control of the Ministry of Ports, Shipping and Waterways. It operates a shipyard designed and constructed under technical collaboration with Mitsubishi Heavy Industries, Japan. It has a shipbuilding dry-dock, which is capable of handling ships up to 1,10,000 deadweight tonne (DWT), and a ship repair dry-dock, which can handle ships up to 1,25,000 DWT. As on September 30, 2022, the government of India owned 72.86% stake in the company.

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