In Friday’s session, the share price of one of the leading warship builders in India surged nearly 7 percent on BSE to Rs. 1,876, after the company signed an MoU for the Supply of Double Lane Modular Bridges with National Highway Infrastructure Development Corporation Ltd. (NHIDCL).
With a market cap of Rs. 21,260.8 crores, at 11:13 a.m., the shares of Garden Reach Shipbuilders & Engineers Limited were trading in the green at Rs. 1,856.8, up by 5.8 percent, compared to its previous closing price of Rs. 1,754.9.
What’s the news:
According to the latest regulatory filings on the stock exchanges, Garden Reach Shipbuilders & Engineers Limited (GRSE) signed an MoU and secured a deal with the National Highway Infrastructure Development Corporation Ltd. (NHIDCL).
The deal is for the fabrication, supply and launching of Double-Lane Class 70 modular steel and Bailey bridges.
This agreement entails constructing and delivering Class 70R Double-Lane Bridges to enhance connectivity in critical forward areas along India’s borders, facilitating seamless troop and equipment deployment.
The company’s double-lane steel bridge stands as the sole indigenous solution of its kind, in line with India’s Aatmanirbhar Bharat Abhiyan.
Under a similar MoU signed with the Border Roads Organization (BRO), GRSE has already supplied 44 such bridges across India.
Previous News:
On 22nd July, Garden Reach Shipbuilders entered into two non-binding MoUs.
The first MoU was with Merlinhawk Aerospace Private Limited for collaboration towards the development of composite Doors and Hatches for use in Naval Ships, Counter UAV Solutions using EDFCS along with CRN 91, EOIRST for Surveillance, Composite Masts for Indian Navy Ships and Hydrogen fuel cells based power generation for maritime applications.
The second MoU was signed with Kerala State Electronics Development Corporation Limited for establishing collaborative working arrangement towards development of core futuristic technologies in various fields to achieve self-reliance in certain areas of Under Water Surveillance.
On 30th July, GRSE entered into a non-binding MoU with Medha Servo Drives Pvt. Ltd., Hyderabad, for the joint manufacture of advanced electrical/electronic equipment and systems.
Financial:
The revenue from operations of Garden Reach Shipbuilders stood at Rs. 1,010 crores in Q1 FY24-25, rising by 33.6 percent YoY from Rs. 756 crores in Q1 FY23-24, accompanied by a growth in net profit of 13 percent YoY to Rs. 87 crores from Rs. 77 crores, during the same period.
Garden Reach Shipbuilders has set a target to reach Rs. 10,000 crores in revenue by FY30, marking a nearly threefold increase from the Rs. 3,592 crores reported at the end of FY24.
Currently, the company boasts an order book valued at Rs. 25,231 crores, with 90 percent of this coming from the shipbuilding segment.
The company’s CMD has indicated that GRSE anticipates securing new orders worth between Rs. 1,500 crore and Rs. 2,000 crore over the next three to six months, which will include export contracts.
Stock Performance:
The shares of Garden Reach Shipbuilders have delivered multibagger returns of nearly 133 percent in one year as well as around 130 percent in the last six months. So far in 2024, it has given about 114.2 percent of multibagger returns.
About the company:
Incorporated in 1934, Garden Reach Shipbuilders & Engineers Limited is mainly engaged in the construction of warships. The Company was taken over by the Government of India in 1960.
Garden Reach Shipbuilders aims to become a Navratna company by 2030 and be globally recognised as the best Indian Shipyard company.
Written by Shivani Singh
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