The shares of the Defence shipbuilding company focused on constructing warships for the Indian Navy and Coast Guard, jumped upto 6 percent upon signing MoU with PWD (R&B), Nagaland
Price action
With a market capitalization of Rs. 19,461.24 crores on Thursday, the shares of Garden Reach Shipbuilders & Engineers Limited jumped upto 6.3 percent making a high of Rs. 1746.10 per share compared to its previous closing price of Rs. 1641.15 per share.
What Happened
Garden Reach Shipbuilders & Engineers Limited is engaged in constructing warships for the Indian Navy and the Coast Guard has signed a Memorandum of Understanding (MoU) with the Public Works Department (PWD) of Nagaland.
The MoU intends to supply eight sets of Double Lane Modular Steel Bridges in the state of Nagaland. This marks GRSE’s first MoU with a northeastern state, supporting the Government of India’s “Make in India” initiative for regional development.
This was signed on March 19, 2025, in Kohima, with GRSE’s senior officials present. GRSE has previously supplied modular bridges to various organizations, including the Border Roads Organisation and international countries, totaling over 5,800 modular bridges.
About the company
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a leading Indian shipbuilding company, primarily engaged in the design, construction, and repair of warships, cargo vessels, and offshore platforms. The company operates multiple state-of-the-art shipyards and has delivered numerous ships to the Indian Navy and Coast Guard.
Order Book and upcoming projects
The current order book stands at Rs 23,877 crore, covering 40 platforms across 10 projects, including 17 Navy warships, an Oceanographic Research Vessel, and an Acoustic Research Vessel. It also includes 6 Multi-Purpose Vessels for a German client, export orders, and 13 hybrid ferries for West Bengal, funded by the World Bank.
Market Outlook
Management remains optimistic, forecasting a 20 percent to 25 percent CAGR over the next five years. The company is confident in securing high-value orders from upcoming RFPs, particularly for the Corvette and P-17 Bravo projects, strengthening its growth trajectory and reinforcing its position in the defense sector.
Financials
The company’s revenue rose by 33.7 percent from Rs. 1,004.61 crore to Rs. 1,343.13 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 88.25 crore to Rs. 98.19 crore during the same period.
Written by Sridhar J
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