Garden Reach Shipbuilders gains on receiving order from Guyana Government

Garden Reach Shipbuilders & Engineers Ltd announced that it has signed a contract on January 13, 2021 with Transport & Harbours Department, Ministry of Public Works (Government of Guyana). The signed contract is for designing, construction and supply of an ocean-going passenger and cargo vessel by Garden Reach Shipbuilders & Engineers Limited. The approximate cost of the contract is Rs 93 crore. 

Reacting to this, the stock of the company today jumped 5.97 per cent and made an intraday high of Rs 205.75 per share. 

The company reported a net profit of Rs 37.70 crore in Q2FY21, a decrease of 36.13 per cent. It had reported a profit of Rs 59.02 crore in Q2FY20. The company reported net sales of Rs 272.44 crore for Q2FY21, a decrease of 37.94 per cent as against the net sales of Rs 439.02 crore for Q2FY20. 

Garden Reach Shipbuilders & Engineers Ltd is a shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. 

According to BSE data, the stock traded at a P/E multiple of 19 and a price-to-book ratio of 2.09. The stock has a 52-week high and a 52-week low of Rs 243.20 and Rs 105.30, respectively. 

At the time of market closing, the company’s stock was trading at Rs 197.60, up by 1.78 per cent on BSE.