This defense company, which specializes in designing, constructing, and repairing warships, patrol vessels, and support ships for the Indian Navy and Coast Guard, jumped 5 percent after signing an MoU with SWAN Defence to boost India’s commercial shipbuilding capabilities.
Stock Price Movement
With a market capitalization of Rs. 17,854.65 crores, the share of Garden Reach Shipbuilders and Engineers Limited has reached an intraday high of Rs. 1,599.95 per equity share, rising nearly 4.63 percent from its previous day’s close price of Rs. 1,529.10. Since then, the stock has retreated and is currently trading at Rs. 1,558.65 per equity share.
What Happened
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has signed an MoU with SWAN Defence to boost India’s commercial shipbuilding capabilities. The collaboration focuses on building commercial vessels and offshore structures and enhancing infrastructure, expertise, and design.
The partnership aims to improve efficiency, reduce costs, and create a skilled workforce. This initiative aligns with the “Aatmanirbhar Bharat” vision, supporting the growth of India’s maritime sector and contributing to national and international demands.
Strategic Initiatives
GRSE has signed an MoU with the National Highways Infrastructure Development Corporation to supply portable steel bridges, with expected orders for 75 bridges over the next two years.
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Upcoming Projects
Garden Reach Shipbuilders and Engineers Limited (GRSE) will construct coastal research vessels for the Geological Survey of India. The company has also submitted bids for the Next Generation Corvette (NGC) project, which is currently under technical evaluation. Additionally, GRSE expects to receive Requests for Proposals (RFPs) for naval projects, including P17 Bravo frigates and other vessels.
Future Outlook
The management targets a steady 25 percent annual growth from FY23 to FY27, expecting strong revenue and new orders. They believe they can reach this goal by continually expanding the business and exploring new opportunities.
Recent quarter results
Garden Reach Shipbuilders and Engineers Limited’s revenue rose by 37.70 percent, from Rs. 923 crore in Q3 FY24 to Rs. 1,271 crore in Q3 FY25. The net profit also increased by 10.20 percent, from Rs. 88 crore in Q3 FY24 to Rs. 98 crore in Q3 FY25.
Written By – Nikhil Naik
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