Rs 23,739.59 crore order book: Multibagger defence shipbuilding stock with 1,300 per cent returns in green with 2.2 times spurt in volume; Reported positive Q1FY25 results!

The stock has delivered multibagger returns of 178 per cent from its 52-week low and a whopping 1,300 per cent in 5 years.

On Wednesday, shares of Garden Reach Shipbuilders & Engineers Ltd gained 1.40 per cent to Rs 1,802 per share from its previous closing of Rs 1,777.25 with an intraday high of Rs 1,865.10 and an intraday low of Rs 1,726.10. The stock’s 52-week high is Rs 2,834.60 and its 52-week low is Rs 648. The shares of the company saw a spurt in volume by more than 2.20 times on BSE.  The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

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 20,000 crore.

Garden Reach Shipbuilders & Engineers Limited (GRSE), a leading Indian warship builder, has reported robust financial performance for the first quarter of the fiscal year 2024. The company's total income surged by 31 per cent to Rs 1,084 crore compared to the previous year, driven by a 34 per cent increase in operating revenue to Rs 1,010 crore. GRSE's profitability also improved, with Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rising 11 per cent to Rs 130 crore. Consequently, Profit Before Tax (PBT) and Profit After Tax (PAT) grew by 13 per cent each, reaching Rs 115 crore and Rs 87 crore, respectively.

Commenting on the results, Cmde Hari PR, IN (Retd) Chairman and Managing Director, Garden Reach Shipbuilders & Engineers Limited said, “The shipyard is on a growth trajectory and the Q1 FY25 financial results have been very encouraging. Considering our current order book and the project execution plan, I am confident of maintaining this upward trend in the coming years."

Earlier, Garden Reach Shipbuilders and Engineers Ltd (GRSE) partnered with Medha Servo Drives Pvt Ltd to boost India's self-reliance in shipbuilding by jointly producing advanced electrical and electronic equipment for both naval and commercial vessels. Combining GRSE's shipbuilding expertise with Medha Servo's electrical and electronic knowledge, the collaboration aims to manufacture control and monitoring systems, electric propulsion systems and other critical components. This partnership strengthens GRSE's position as a leading defence shipyard with a diverse portfolio including warships, portable steel bridges, ship repair and specialized vessels for domestic and international markets, as evidenced by their recent contracts for an Ocean Research Vessel, a tug and dredger and multipurpose vessels.

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 178 per cent from its 52-week low and a whopping 1,300 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. 

Also Read: 52-week high alert: ONGC, IOL, Gail & BPCL-backed company signs MoU with LTL Holdings Limited (LTL) of Sri Lanka