52-week high alert & Rs 23,739.59 crore order book: Heavy buying in this shipbuilding stock; bags order from Bangladesh Inland Water Transport Authority & L1 order from DRDO

The stock has delivered multibagger returns of 210 per cent from its 52-week low and a whopping 700 per cent in 3 years.

On Friday, shares of Garden Reach Shipbuilders & Engineers Ltd gained 9.50 per cent and made a fresh new 52-week high of Rs 1,687.25 per share from its previous closing of Rs 1,541.05. The shares of the company saw a spurt in volume by more than 5.51 times on BSE.

Garden Reach Shipbuilders & Engineers Ltd 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 Rs 18,647 crore.

Garden Reach Shipbuilders & Engineers has 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.

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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 210 per cent from its 52-week low and a whopping 700 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.