Garden Reach bags orders, stock shines

entered into a contract with the Government of India, Ministry of Defence, for orders worth Rs. 6,311.32 crore.

The said order is for the construction and delivery of eight ships (ASW Swallow Water Craft) on a fixed price basis. The company further informed that the first ship is to be delivered within 42 months from the contract signing date. The subsequent ships are to be delivered on a two-ship a year basis. The project is expected to be completed within 84 months.

With response to this positive development, the stock of Garden Reach reacted positively and shine on the bourses by nearly 20 per cent and missed the upper circuit of Rs. 113.55 by a kissing distance. The stock touched an intra-day high of Rs. 113.50 apiece. However, later the stock cooled down and at 12:52 hours, the stock was trading at Rs. 104.9, up by around 10.8 per cent from its previous close.

Garden Reach Shipbuilders & Engineers is involved in the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. The shipbuilding division accounted for nearly 94 per cent of the company's overall revenue in the FY18.