Rs 23,739.59 crore order book: Heavy buying in this multibagger defence shipbuilding stock; Jumps over 13 per cent & Earlier signed MoU with Medha Servo Drives Pvt Ltd

The stock has delivered multibagger returns of 275 per cent from its 52-week low and a whopping 1,550 per cent in 5 years.

On Wednesday, shares of Garden Reach Shipbuilders & Engineers Ltd jumped over 13 per cent to an intraday high of Rs 2,224.90 per share from its intraday low of Rs 1,965. The stock’s 52-week high is Rs 2,834.60 and its 52-week low is Rs 575. At the closing bell, shares of the company were trading at Rs 2,180 per share, up 3.83 per cent from its previous closing of Rs 2,099.55 per share with a spurt in volume by more than 1.35 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 Rs 24,972.34 crore.

In a move that furthers India's self-reliance efforts (Atmanirbhar Bharat), Garden Reach Shipbuilders and Engineers Ltd (GRSE) signed a Memorandum of Understanding (MoU) with Hyderabad-based Medha Servo Drives Pvt Ltd. This collaboration focuses on jointly manufacturing advanced electrical and electronic equipment for both naval and commercial vessels. The MoU leverages GRSE's expertise in shipbuilding and system integration with Medha Servo's knowledge of electrical and electronic equipment, aiming to produce control and monitoring systems, electric propulsion systems for marine use, and PGD components.

This partnership strengthens GRSE's position as a leading defence shipyard, with a proven record of delivering over 109 warships for India. Beyond warships, GRSE is a pioneer in portable steel bridges and has diversified into ship repair, 30mm Naval Surface Gun production, and designing specialized vessels for domestic and international markets. Notably, they recently secured a contract to build an Ocean Research Vessel for India and are currently constructing a tug and dredger for Bangladesh and multipurpose vessels for a German company.

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 275 per cent from its 52-week low and a whopping 1,550 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. 

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