Rs 25,231.29 crore order book: Multibagger defence shipbuilding stock with 1,300 per cent returns rockets 7.85 per cent with 1.82 times spurt in volume!
The stock has delivered multibagger returns of 195.3 per cent from its 52-week low and a whopping 1,340 per cent in 5 years.
On Tuesday, shares of Garden Reach Shipbuilders & Engineers Ltd gained 7.85 per cent to an intraday high of Rs 1,974.40 per share from its previous closing of Rs 1,830.70. At the closing bell, shares of the company were trading at Rs 1,913.60 per share, up 4.53 per cent with a spurt in volume by more than 1.82 times on BSE.
The Defence Acquisition Council (DAC) is poised to greenlight a tender valued at roughly Rs 70,000 crore, earmarked for Indian shipyards under the 'Make in India' drive. Notably, this tender is set to extend an invitation to private-sector shipyards as well. The scope of the tender is likely to encompass Category A shipyards, including prominent names like Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Engineers Limited, Goa Shipyard Limited, and Larsen & Toubro, alongside other notable players in the shipbuilding industry.
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 21,000 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.
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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.
The order book as of June 30, 2024, stands at Rs 25,231.29 crore. The stock has delivered multibagger returns of 195.3 per cent from its 52-week low and a whopping 1,340 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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