Rs 23,739.59 crore order book: Heavy buying in this multibagger shipbuilding stock with 2,000 per cent returns; Hit upper circuit on July 11
The stock has delivered multibagger returns of 359.2 per cent from its 52-week low and a whopping 2,000 per cent in 5 years.
Today, shares of Garden Reach Shipbuilders & Engineers Ltd hit a 5 per cent upper circuit to an intraday high of Rs 2,594.75 per share from its previous closing of Rs 2,471.20. The stock’s 52-week high is Rs 2,834.60 and its 52-week low is Rs 565.10. The shares of the company saw a spurt in volume by more than 1.01 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 29,723.38 crore.
Garden Reach Shipbuilders and Engineers (GRSE) has recently signed several important contracts. They secured a contract with the Bangladesh government to construct an advanced ocean-going tug for approximately USD 21 million, to be delivered within 24 months. This follows a major export deal worth USD 54 million for building four multi-purpose cargo vessels for a German company. These vessels will be 120 meters long, 17 meters wide and will have a capacity of 7,500 tonnes. They can handle bulk, general, and project cargo, with the ability to carry containers on deck and are designed to transport windmill blades. The project will be completed in 33 months. Additionally, GRSE was awarded a contract by Bangladesh for a trailing suction hopper dredger with a 1000 cubic meter hopper capacity for a total value of USD 1,65,75,210 (excluding taxes). They are also frontrunners to construct a research vessel for India's DRDO for approximately Rs 500 crore, though negotiations 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 359.2 per cent from its 52-week low and a whopping 2,000 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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