2 multibagger defence stocks turn ex-dividend; surge up to 1,200% in 5 years

Cochin Shipyard (CSL) and Garden Reach Shipbuilders & Engineers (GRSE), two defence stocks that have delivered multibagger returns over the past five years, go ex-dividend today, Friday, September 12.

Cochin Shipyard has generated a massive 926.24 per cent return in five years, with its share price surging from Rs 164.23 to Rs 1,686.30. CSL had set September 12 as the record date to determine shareholders eligible for a final dividend of Rs 2.25 per equity share for FY24-25. The dividend would be paid within 30 days following approval at the company’s 53rd Annual General Meeting, scheduled for September 29.

Owned by the Government of India, CSL is engaged in shipbuilding and ship repair, catering to domestic clients including the Indian Navy, Ministry of Home Affairs, Dredging Corporation of India, various ports, the Inland Waterways Authority of India, and the Andaman & Nicobar Administration.

Internationally, it has exported 47 vessels to countries such as Norway, Netherlands, Cyprus, USA, Germany, Denmark/Bahamas, Saudi Arabia, and UAE. The company also undertakes vessel repairs, maintenance, and life-extension projects.

Similarly, Garden Reach Shipbuilders has delivered a staggering 1,272.98 per cent return over five years, with its stock rising from Rs 179.90 to Rs 2,470. The company primarily constructs warships and has a diversified portfolio including shipbuilding, engineering, diesel engines, and ship repair. Most of its supplies serve Indian defence services such as the Navy, Coast Guard, Army, and Border Roads Organisation.

GRSE had also set September 12 as the record date for its final dividend of Rs 4.90 per equity share for FY24-25. Subject to approval at the 109th AGM, the dividend would be paid within 30 days from the date of declaration.

Earlier on Friday, Cochin Shipyard shares were trading 2.21 per cent higher at Rs 1,688, while Garden Reach Shipbuilders shares were trading about 4.71 per cent higher at Rs 2,468.

Both stocks exhibit high volatility, with Cochin Shipyard’s one-year beta at 1.4 and GRSE’s at 1.5. While both are trading below their 50-day simple moving average (SMA), they remain above their 200-day SMA, indicating long-term strength despite short-term pressure.

Investors holding these shares on the record date will be eligible for the dividend payouts, adding another benefit to their impressive returns over the past five years.