Rs 25,231.29 Crore Order Book: Defence Shipbuilding Company Reports Stellar Results, Revenue Surge By 28.4 Per Cent & PAT Jumps 21.1 Per Cent
The stock has delivered multibagger returns of 120 per cent from its 52-week low and a whopping 450 per cent in 3 years.
On Thursday, shares of Garden Reach Shipbuilders & Engineers Ltd gained 1.35 per cent to Rs 1,403.55 per share with an intraday high of Rs 1,470.80 and an intraday low of Rs 1,375 from its previous closing of Rs 1,384.80 per share. The shares of the company saw a spurt in volume by more than 1.72 times on BSE.
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 16,000 crore.
GRSE's upgradation to 'Schedule A' CPSE status is a testament to its strong financial performance, operational excellence, and vital role in bolstering national security. This significant milestone, officially recognized by the Department of Public Enterprises on September 17, 2024, will empower GRSE to expand its senior management capabilities and fortify its position as a key player in the Indian shipbuilding industry.
The company announced positive Quarterly Results (Q2FY25) and half-yearly results (H1FY24) for the financial year 2024. According to quarterly results, revenue increased by 28.4 per cent to Rs 1,152.92 crore, EBITDA increased by 19.4 per cent to Rs 143.65 crore and PAT increased by 21.1 per cent to Rs 97.77 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, revenue increased by 30.8 per cent to Rs 2,162.64 crore, EBITDA increased by 15.5 per cent to Rs 273.78 crore and PAT increased by 17.5 per cent to Rs 184.97 crore in H1FY25 compared to H1FY24.
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Earlier, the company has secured a significant contract from the Naval Physical & Oceanographic Laboratory (NPOL) to construct an Acoustic Research Ship (ARS), valued at Rs 490.98 crore. This specialized vessel will be equipped with advanced acoustic research capabilities, contributing to India's naval and oceanographic research. Additionally, GRSE has won contracts from the West Bengal government to design, build, operate, and maintain 13 hybrid electric ferries, including 100-passenger non-AC ferries and 200-passenger twin-deck AC ferries. These contracts, valued at approximately Rs 226.18 crore, are part of the WBIWTLSD Project and will be executed within 30 months.
The order book as of June 30, 2024, stands at Rs 25,231.29 crore. The stock has delivered multibagger returns of 120 per cent from its 52-week low and a whopping 450 per cent in 3 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.