Rs 23,877 Crore Order Book: Shipbuilding Company signs MoU with SWAN Defence to strengthen indigenous shipbuilding, boost exports, build a skilled workforce, and drive 'Aatmanirbhar Bharat' growth
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.
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has entered into a strategic Memorandum of Understanding (MoU) with SWAN Defence and Heavy Industries Ltd. to enhance indigenous commercial shipbuilding capabilities. This collaboration aligns with the national vision of 'Aatmanirbhar Bharat' in the maritime sector. The partnership will focus on constructing commercial vessels and offshore structures for global clients, leveraging each other's strengths in infrastructure and design capabilities. The alliance aims to optimise costs through a mutually beneficial vendor ecosystem and emphasises training a skilled local workforce. This MoU is expected to catalyse the growth of a robust vendor ecosystem and generate employment through skill development in the shipbuilding sector.
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a premier shipbuilding company in India under the Ministry of Defence, primarily serving the Indian Navy and Coast Guard. The company generates 89 per cent of its revenue from shipbuilding, constructing vessels such as frigates, missile corvettes, and offshore patrol vessels. GRSE also has a small engineering division and a diesel engine segment, contributing less than 1 per cent and 3 per cent of revenues, respectively.
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The company boasts a robust order book of Rs 23,592 crore, with major projects for the Indian Navy, including the P17 Alpha Project and Anti-Submarine Shallow Water Crafts. GRSE has a proven capacity to build 20 warships concurrently and focuses on exports, targeting a 25 per cent CAGR growth over the next two years. The company is modernising its infrastructure to enhance its shipbuilding capabilities further.
As of April 8, 2025, the current stock price of Garden Reach Shipbuilders & Engineers Ltd. is Rs 1,568.9. The 52-Week High is Rs 2,709.8, and the 52-Week Low is Rs 859.55. Market Capitalisation: Rs 17,516 crore; 1-Year Return: 70.28 per cent; 3-Year Return: 505.94 per cent; Price-Earnings (PE) Ratio: 47.47.
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.