Rs 23,592 crore order book and FIIs increase stake: This multibagger shipbuilding stock bags new order worth USD 1,65,75,210 from Bangladesh!

Shares of the company have gained about 40 per cent in the last six months.

Garden Reach Shipbuilders & Engineers Limited (GRSE) has been awarded a contract by the People's Republic of Bangladesh for the construction of a trailing suction hopper dredger. The dredger will have a hopper capacity of 1000 cubic meters and will come with spare parts. The final contract value, excluding taxes, is expected to be around USD 1,65,75,210. This project strengthens GRSE's position in the shipbuilding industry and expands its footprint in the Bangladeshi market.

The company is well-positioned for future growth, with a strong order book of Rs. 23,592 crores as of December 31, 2023. Shipbuilding forms the core of this impressive figure, with ship repair and other segments like portable steel bridges contributing a smaller portion.  This strength is primarily driven by four significant projects undertaken for the Indian Navy. The first, the P17 Alpha Project, involves the construction of three undisclosed warships, details likely classified for security reasons.

The second, the Survey Vessel Large Project focuses on building four advanced ships crucial for gathering vital oceanographic data. The third project involves manufacturing eight anti-submarine warfare vessels to counter underwater threats in shallow waters, a vital capability for India's coastal defense. Finally, the Next Generation Ocean Going Patrol Vessel Project aims to develop four cutting-edge patrol vessels equipped with advanced technologies to enhance the Navy's surveillance and patrol capabilities in the Indian Ocean region.

Garden Reach Shipbuilders & Engineers Limited is a premier 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. The stock has delivered multibagger returns of about 120 per cent in the last one year. Additionally, FIIs and DIIs increased their stake in the company in March 2024.

Disclaimer: The article is for informational purposes only and not investment advice.