1,700 per cent returns and FIIs increase stake: This multibagger shipbuilding and defence stock signs MoU to manufacture advanced electrical equipment and systems!
Shares of the company gained more than 150 per cent in the last six months.
Garden Reach Shipbuilders and Engineers has entered into a Memorandum of Understanding (MoU) with Medha Servo Drives Pvt Ltd to jointly manufacture advanced electrical and electronic equipment for naval and commercial platforms. The collaboration aims to leverage GRSE's shipbuilding expertise and Medha Servo Drives' technological prowess in electrical and electronic systems. The partnership will focus on developing control and monitoring systems, electrical propulsion systems, and other critical components. This strategic alliance aligns with the Indian government's 'Atmanirbharta' initiative, promoting self-reliance in defense manufacturing. GRSE, known for its warship building capabilities, has diversified into ship repairs, refits, and the production of naval guns. The company is also expanding its footprint in the commercial market with projects for ocean research vessels, tugs, dredgers, and multi-purpose vessels.
Recently, Garden Reach Shipbuilders & Engineers signed a contract with the National Centre for Polar and Ocean Research (NCPOR) for the construction and delivery of a new Ocean Research Vessel (ORV). This domestic project, valued at approximately Rs 840 crore, involves building a single, state-of-the-art ORV within a 42-month timeframe.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
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 280 per cent in the last one year and 1,700 per cent in the last five years. Additionally, FIIs increased their stake in the company in June 2024. The company is well-positioned for future growth, with a strong order book of Rs. 22,652 crores as of March 31, 2024.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.