Defence stock engaged in catering to the shipbuilding requirements of the Indian Navy, Indian Coast Guards, and many others jumped 5 percent in the day’s trade upon signing multiple MoUs towards the developments of maritime applications and underwater surveillance
Price Action
With a market capitalization of Rs. 29,300 Crores, the shares of Garden Reach Shipbuilders & Engineers Limited were trading at Rs. 2,550 per equity share, up 3.72 percent from its previous day’s close price of Rs. 2,458.60.
What Happened
Garden Reach Shipbuilders & Engineers Limited a shipbuilding company catering to the shipbuilding requirements of the Indian Navy, Indian Coast Guard, and many others has entered into two non-binding memorandum of understanding (MOUs) with Merlinhawk Aerospace and Kerala State Electronics Development Corporation Limited (KELTRON).
The first MoU signed with Merlinhawk Aerospace Private Limited is for Collaborating towards the development of composite Doors and Hatches for use in Naval Ships, Counter UAV Solutions using EDFCS along with CRN 91, Electro-Optical Infra-Red Search and Track system (EOIRST) for Surveillance, Composite Masts for the Indian Navy Ships and Hydrogen fuel cell based power generation for maritime applications.
The second MoU signed with Kerala State Electronics Development Corporation Limited (KELTRON) is to establish collaborative working arrangements towards the development of core futuristic technologies in various fields to achieve self-reliance in certain areas of underwater surveillance.
About the company
Garden Reach Shipbuilders Limited is a shipbuilding company catering to the shipbuilding requirements of the Indian Navy, Indian Coast Guard, and many others. It is engaged in the construction, and engineering of commercial vessels and engine production activities. It is mainly engaged in the construction of warships/vessels for the defence sector.
As of 31st March 2024, Garden Reach Shipbuilders & Engineers Limited has a strong order book of Rs. 22,652.68 Crores consisting of P17 Alpha Project, Survey Vessel Large Project, Anti-Submarine Shallow Water Craft Project, Next Generation Ocean Going Petrol Vessel, multi-purpose vessels, and many others.
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 0.39 percent stake.
Financials and Ratios
Its revenue from operations grew by 40 percent from Rs. 2,561 Crores in FY23 to Rs. 3,593 Crores in FY24, accompanied by profits of Rs. 228 Crores to Rs. 357 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 23.1 percent, and a return on capital employed (ROCE) of 28.4 percent. It has reported a debt-to-equity ratio of 0.04.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
