Rs 23,877 Crore Order Book: Government Shipbuilding Undertaking Bags Rs 489.98 Crore Order for 2 Coastal Research Vessels; Strengthening India’s Maritime Capabilities
During the last year the company achieved a remarkable 70.87 per cent return and demonstrated outstanding performance with a 519.89 per cent return over three years.
Under a contract valued at Rs 489.98 crore Garden Reach Shipbuilders & Engineers Ltd. will design and build two Coastal Research Vessels for the Geological Survey of India. During the next 36 months GRSE will complete the vessels. GRSE will handle the design and delivery and construction of the vessels since the company operates as a government undertaking under the Ministry of Defence. The company declared the order does not include any transactions with related parties and none of the promoter group companies have any interest in the entity that received the contract. This strategic development supports GRSE's shipbuilding expansion plans while demonstrating the company's commitment to India's maritime defense capabilities.
The Ministry of Defence operates Garden Reach Shipbuilders & Engineers Ltd. as its main shipbuilding organization to serve the Indian Navy and Coast Guard. The company produces 89 per cent of its income through its shipbuilding activities by constructing frigates, missile corvettes and offshore patrol vessels. GRSE operates an engineering division as well as a diesel engine segment which generates less than 1 per cent and 3 per cent of revenues, respectively.
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The Indian Navy depends on GRSE for critical projects because the company holds a robust order book worth Rs 23,592 crore. GRSE continues to explore export markets by delivering defense platforms to Mauritius and Seychelles while planning for 25 per cent annual compound growth during the following two years. The organization continues to update its facilities for better shipbuilding efficiency while refraining from expanding its production capacity.
The current market price of Garden Reach Shipbuilders & Engineers Ltd. stock stands at Rs 1516.6 on April 09 2025. The stock price fluctuated between Rs 859.55 as its 52-Week Low and Rs 2709.8 as its 52-Week High. The market capitalization of Garden Reach Shipbuilders & Engineers Ltd. amounts to Rs 17,919 crore. During the last year the company achieved a remarkable 70.87 per cent return and demonstrated outstanding performance with a 519.89 per cent return over three years. The Price-Earnings (PE) Ratio stands at 44.37.
The President of India's portfolio owns 8,53,41,240 shares or 74.50 per cent stake in the company as of December 2024. The order book as of December 31, 2024, stands at Rs 23,877 crore. The stock has delivered multibagger returns of 120 per cent from its 52-week low and a whopping 1,125 per cent in 5 years. Investors should keep a close watch on this Small-Cap shipbuilding stock.
Disclaimer: The article is for informational purposes only and not investment advice.