The shares of the leading shipbuilding company gained up to 5 percent after the company signed prestigious contracts with Carsten Rehder Schiffsmakler and Reederei GmbH & Co worth USD 54 million.
Garden Reach Shipbuilders & Engineers Ltd has a market capitalization of Rs 20,138.24 crore, the shares were trading at Rs 1,757.40 per share, increasing around 2.34 percent as compared to the previous closing price of Rs 1,717.25 apiece.
Reason for rise:-
According to the corporate filing, Garden Reach Shipbuilders & Engineers Ltd has inked important contracts with Carsten Rehder Schiffsmakler and Reederei GmbH & Co for the construction and delivery of four further multipurpose vessels of 7,500 DWT each, for a total of eight vessels. The deal is valued at USD 54 million.
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Financial performance:-
The company’s revenue surged 33%, rising from ₹756 crore in Q1FY24 to ₹1,010 crore in Q1FY25, while net profit increased by 12%, growing from ₹77 crore to ₹87 crore during the same period, reflecting strong financial performance and continued business growth.
Order Book & recent achievement:-
As of June 30, 2024, the company’s entire order book was Rs. 25,231.29 crore. This consists largely of shipbuilding orders. These orders include the P17 Alpha Project, three destroyers under construction for the Indian Navy, eight anti-submarine shallow watercraft, three large survey vessels, and four Next Generation Ocean Going Patrol Vessels. The business is building a total of 18 warships for the Indian Navy.
According to the most recent filing, the company declared L1 for a project for the DRDO Naval Physiological and Oceanographic Laboratory for an Acoustic Research Vessel, the Geological Survey of India for a coastal reference vessel, and two projects for the Government of West Bengal for advanced hybrid services.
FII Inflow:-
In Q1FY25, the FII/FPI increased their holding in Garden Reach Shipbuilders & Engineers Limited from 3.26 percent to 3.91 percent by purchasing an additional 0.65 percent stake.
Remarkable Return:-
The stock has given a multi-bagger return of 127.74 percent in just six months and a 105.59 percent return in a year, A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 2.05 lakh in a year.
Company Profile:-
Garden Reach Shipbuilders & Engineers Ltd’s primary focus is on shipbuilding for the Indian Navy and Coast Guard. GRSE is a well-diversified, profitable shipyard that was the first in the country to export warships and deliver 100 to the Indian Navy and Coast Guard.
Written by:- Abhishek Singh
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