Rs 23,739.59 crore order book: Multibagger shipbuilding company bags new order worth USD 54 million from Carsten Rehder Schiffsmakler and Reederei GmbH & Co

The stock has delivered multibagger returns of 243.5 per cent from its 52-week low and a whopping 800 per cent in 3 years.

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 20,000 crore.

Garden Reach Shipbuilders & Engineers Limited (GRSE) secured a significant export order worth approximately USD 54 million for the construction and delivery of four multi-purpose vessels. This is a positive development for GRSE as it strengthens its foothold in the international shipbuilding market.

The contract was signed with M/s Carsten Rehder Schiffsmakler und Reederei GmbH & Co., KG Germany. The agreement entails building four multi-purpose cargo vessels, each with a deadweight tonnage (DWT) of 7,500. These seaworthy vessels will be 120 meters long, 17 meters wide and will have a maximum draft of 6.75 meters. Each vessel can carry a substantial cargo load of 7,500 metric tonnes. Designed for versatility, the vessels will have a single cargo hold to accommodate bulk, general, and project cargoes. Containers can be conveniently placed on the hatch covers for additional cargo transport. Notably, these ships are specifically designed to carry multiple large windmill blades on deck, catering to the growing renewable energy sector. The entire project is expected to be completed within 33 months, showcasing GRSE's efficiency in shipbuilding.

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Earlier, 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.

Today, shares of Garden Reach Shipbuilders & Engineers Ltd gained 9.54 per cent to an intraday high of Rs 1,919 per share from its previous closing of Rs 1,751.85. The stock also made a fresh 52-week high is Rs 1,919 and its 52-week low is Rs 558.60.

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 243.5 per cent from its 52-week low and a whopping 800 per cent in 3 years. Investors should keep a close watch on this Small-Cap stock.

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