Rs 23,739.59 crore order book: Heavy buying in this multibagger shipbuilding stock with 1,700 per cent returns; Hit 52-week high on June 27

The stock has delivered multibagger returns of 289 per cent from its 52-week low and a whopping 1,700 per cent in 5 years.

Today, shares of Garden Reach Shipbuilders & Engineers Ltd gained 4.11 per cent to an intraday high of Rs 2,174.30 per share from its previous closing of Rs 2,088.40. The stock also made a fresh 52-week high is Rs 2,174.30 and its 52-week low is Rs 558.60. The shares of the company saw a spurt in volume by more than 2 times on BSE.

Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a premier shipbuilding company in India, operating under the administrative control of the Ministry of Defence. It primarily caters to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. The company has a market cap of over Rs 24,000 crore.

Earlier, the company landed a major export contract worth approximately USD 54 million, marking a significant step forward in the international shipbuilding market. The agreement with M/s Carsten Rehder Schiffsmakler und Reederei GmbH & Co., KG Germany involves constructing four multi-purpose cargo vessels, each measuring 120 meters long, 17 meters wide, and boasting a 7,500-deadweight tonnage (DWT) capacity. These versatile vessels will feature a single cargo hold designed to handle bulk, general, and project cargo, with the option for additional containerized cargo on the hatch covers. Notably, the ships are specifically built to transport multiple large windmill blades, catering to the growing renewable energy sector. With a completion timeframe of 33 months, this project underlines GRSE's efficiency in shipbuilding.

Also Read: Rs 38,389 crore order book: After IREDA, this Debt-free multibagger warship and submarine builders company receives ‘Navratna’ Status; Hit 52-week high!

Furthermore, GRSE secured two significant contracts. First, on May 16, 2024, they were awarded a contract by the Government of Bangladesh to build a trailing suction hopper dredger with a 1000 cubic meter hopper capacity, for a total value of USD 1,65,75,210 (excluding taxes). While a final contract is being finalized, the company has already accepted the award. Second, Garden Reach Shipbuilders & Engineers is also the frontrunner to construct a research vessel for India's Defence Research and Development Organisation (DRDO), with a project value of approximately Rs 500 crore. Negotiations for this contract are still ongoing.

Order Book Updates: The order book as of March 31, 2024, stands at Rs 22,652.68 crore. This order book mainly consists of orders from the shipbuilding sector comprising Rs 22,593 crore with the P17 Alpha Project having a value of Rs 12,174 crore, the survey vessel large project of Rs 940 crore, the anti-submarine shallow watercraft project of Rs 4,886 crore and the next generation ocean going petrol vessel at Rs 3,359 crore.

The stock has delivered multibagger returns of 289 per cent from its 52-week low and a whopping 1,700 per cent in 5 years. Investors should keep a close watch on this Small-Cap stock.

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