Defence stock engaged in catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guards jumped 7 percent in the day’s trade upon being declared as the L1 bidder by DRDO for a project worth Rs. 500 Crores.
With a market capitalization of Rs. 15,425 Crores, the shares of Garden Reach Shipbuilders & Engineers Limited were trading at Rs. 1,348 per equity share, up 3.79 percent from its previous day’s close price of Rs. 1,298.78.
Garden Reach Shipbuilders & Engineers Limited has been declared as the Lowest Bidder (L1) by the Defence Research and Development Organisation (DRDO) for the construction of a Research Vessel for a consideration of Rs. 500 Crores.
In Addition, it has recently entered into a contract with the Bangladesh Inland Water Transport Authority (BIWTA) for the Procurement of one Trailing Suction Hopper Dredger (Hopper Capacity 1000 m3 ) with spare parts for USD 1,65,75,210.
Garden Reach Shipbuilders Limited is a shipbuilding company catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. 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 Q4FY24, the FII/FPI increased their holding in Garden Reach Shipbuilders & Engineers Limited from 2.86 percent to 3.26 percent by purchasing an additional 0.39 percent stake.
Its Revenue from operations grew by 69 percent from Rs. 601.17 Crores in Q4FY23 to Rs. 1,015.73 Crores in Q4FY24, accompanied by profits of Rs. 55.3 Crores to Rs. 111.6 Crores.
Written by: Bharath K.S
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