Cochin Shipyard shares slide 5% amid profit booking post stock split
Cochin Shipyard fell over 5% to the day's low of Rs 761.30 on Thursday amid profit booking following a stock split which saw the counter getting subdivided into two shares on Wednesday. The PSU defense stock had hit a 20% upper circuit and hit levels of Rs 802.80 on the NSE.
Shares of PSU defense stock have gone up nearly three times in the last one year and it traded ex-split on Tuesday.
Today's price action has dragged the stock into a strongly overbought zone with momentum indicator MFI hovering near the 88 mark while RSI is around 76 according to Trendlyne data. A number above 70 is considered as overbought while below 30 is seen as oversold.
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.
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.
The Cochin Shipyard shares are currently trading above their 50-day and 200-day simple moving averages.
Around 10 am today, over 54.75 lakh shares were trading on the NSE with the traded value of the stock standing at Rs 425.37 crore.
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.
