Rs 24,221.37 Crore Order Book: Multibagger Defence Shipbuilding Stock; Company Reports Positive Results; Details Inside
The stock has delivered multibagger returns of 136 per cent from its 52-week low and a whopping 780 per cent in 5 years.
On Tuesday, shares of Garden Reach Shipbuilders & Engineers Ltd gained 5.34 per cent to Rs 1,588.90 per share from its previous closing of Rs 1,508.45 per share. The stock’s 52-week high is Rs 2,834.60 per share and its 52-week low is Rs 674.25 per share.
Garden Reach Shipbuilders & Engineers Ltd (GRSE), a Schedule ‘A’ Mini Ratna Category I Company, is a premier Indian warship builder with a rich history dating back to 1884. This Ministry of Defence undertaking has built over 790 platforms, including 110 warships for the Indian Navy, Coast Guard, and foreign navies. From India's first warship, the SDB INS Ajay, to its first export warship, the CGS Barracuda, GRSE's capabilities span a wide range of vessels, including frigates, corvettes, survey vessels, and fast attack craft. The shipyard's commitment to excellence and quality is reflected in its numerous accolades and ongoing infrastructure modernization.
The company announced positive Quarterly Results (Q3FY25) and nine-month results (9MFY24) for the financial year 2024. According to quarterly results, revenue increased by 38 per cent to Rs 1,271.01 crore, EBITDA increased by 13 per cent to Rs 147.41 crore and PAT increased by 11 per cent to Rs 98.19 crore in Q3FY25 compared to Q3FY24. In its half-yearly results, revenue increased by 31 per cent to Rs 3,379.65 crore, EBITDA increased by 15 per cent to Rs 421.18 crore and PAT increased by 15 per cent to Rs 283.16 crore in 9MFY25 compared to 9MFY24.
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Additionally, Garden Reach Shipbuilders & Engineers Ltd (GRSE) and Apollo Micro Systems Limited (AMS) have partnered to develop and supply advanced weapons and electronic systems for the Indian defence sector. The MoU, signed on January 29, 2025, establishes a strategic collaboration focusing on joint R&D, co-production, and supply of underwater weapons and vehicles, mines, communication systems, and air defence systems. This partnership aims to address the needs of various government agencies, including defence forces, paramilitary groups, and the civil sector, as well as target export markets. By leveraging the combined strengths of both organizations, the collaboration will enhance manufacturing infrastructure, modernize existing systems, and further the government's Atmanirbhar Bharat initiative.
The order book as of September 30, 2024, stands at Rs 24,221.37 crore. The stock has delivered multibagger returns of 136 per cent from its 52-week low and a whopping 780 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.