306 per cent return: Net profit rallies over 59 per cent; Multibagger ship-building stock hits fresh 52-week high!

FII’s have increased their holdings from 2.68 per cent to 3.11 per cent in the quarter ending June 2023.

Wednesday's early deals started the session with losses, as both the Sensex and Nifty indices were down by 0.21 per cent and 0.31 per cent respectively. Furthermore, in pessimistic sentiment, the markets are currently navigating a period of volatility, a notable surge of 3.67 per cent in the India VIX.

Navigating through market sentiments, the shares of Garden Reach Shipbuilders & Engineers Limited surged 17.26 per cent, additionally, the stock hits a fresh 52-week high mark of Rs 787.55 per share on BSE. Furthermore, the scrip witnessed a massive spurt in volume by more than 5.30 times. This indicates heavy buying among investors. The reason for this surge was primarily attributed to companies spectacular Q1 performance. Let's have a look:

Q1 FY2024- QoQ Comparison 

The company's revenue demonstrated an encouraging 25.79 per cent rise, reaching Rs 756 crore from the previous Q4 FY23 figure of Rs 601 crore. This period also witnessed an impressive upswing in EBITDA, which reached Rs 46 crore, marking a significant 130 per cent increase compared to the performance in Q4 FY23 on a sequential basis. Furthermore, the Profit After Tax (PAT) saw growth, standing at Rs 102 crore, showcasing a notable 34.21 per cent increase. This performance highlights the company's positive momentum and growth trajectory.

Q1 FY2024- YoY Comparison 

In the initial quarter of FY24, the company's revenue demonstrated an impressive growth rate of 30.34 per cent, ascending to Rs 756 crore from Rs 121.1 crore in Q1 FY23. Simultaneously, the operating profit experienced a substantial rise of 39.39 per cent, amounting to Rs 46 crore. The net profit displayed remarkable expansion, surging to Rs 102 crore, marking a substantial increase of 59.37 per cent.

Further bifurcating the revenue contributors, the largest contributor is the Shipbuilding segment, accounting for a substantial 89.39 per cent of the revenue. Following the trail, the Bailey Bridge segment contributes 3.42 per cent, while the Diesel Engine segment holds a share of 3.18 per cent. This distribution highlights the company's strategic allocation of resources across various sectors to ensure a well-balanced and dynamic growth trajectory.

Zooming out to the shareholding pattern, it reveals that the President of India holds a substantial stake of 74.50 per cent. This coincides with the notable trajectory of Foreign Institutional Investors who increased their holdings from 2.68 per cent to 3.11 per cent in the quarter ending June 2023.

Garden Reach Shipbuilders & Engineers Ltd, overseen by the Ministry of Defence, is India's top shipbuilding company, serving the Indian Navy and Coast Guard.

The stock has witnessed significant buying activity surging more than 306 per cent in the last 2 years. 

Keep a close eye on this trending stock.

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