Share price of this small-cap defense stock and one of the leading warship builders in the country, moved up by nearly 7.6 percent to Rs. 823 on NSE in the trading session of Monday, compared to the previous closing price of Rs. 764.7, after it reported a 33% growth in Annual Turnover for FY24.
With a market cap of Rs. 9,396.1 crore, at 12:53 p.m. the shares of Garden Reach Shipbuilders & Engineers Limited were trading in the green at Rs. 803.55, up by nearly 5.08 percent.
According to the recent filings on the stock exchanges, Garden Reach Shipbuilders & Engineers Limited reported a provisional and unaudited annual turnover of Rs. 3,400 crore for FY23-24, the highest-ever annual turnover in the history of the company.
The company’s effective resource management and improved internal efficiency have enabled it to achieve this strong financial performance.
Along with this, the company’s commissioning of the MV “Ma Lisha,” a GRSE-built ship for the Cooperative Republic of Guyana, marked another major milestone for the year.
Further, the company signed a Memorandum of Understanding (MoU) with the Border Roads Organisation (BRO) for the fabrication, supply, installation and launching of an additional 30 Double-Lane Class 70 modular steel bridges in border areas.
Another notable achievement is the order secured for indigenously developing and supplying ten 30 mm Naval Surface Gun for the Indian Navy.
In terms of financials, the company’s revenue from operations grew by 2.78% from Rs. 898 crores in Q2 FY23-24 to Rs. 923 crore in Q3 FY23-24, accompanied by an increase in the net profit of 8.6% to Rs. 88 crore in Q3 FY23-24 from Rs. 81 crore in Q2 FY23-24.
As of December 2023, FIIs hold 2.86 percent of the shares, while DIIs hold 6.03 percent of the shares in the company, aggregating to 8.89 percent of the institutional holdings. The government still holds 74.5 percent stake in Garden Reach Shipbuilders & Engineers.
The company has delivered nearly 83.4 percent returns in the last one year. However, it has given negative returns of around 1.1 percent in the last six months and about 6.03 percent, so far in 2024.
Primarily serving the shipbuilding needs of the Indian Navy and the Indian Coast Guard, Garden Reach Shipbuilders & Engineers Ltd. is a premier shipbuilding company in India under the administrative control of the Ministry of Defense.
It is the first Shipyard in India to export warships and deliver 100 warships to the Indian Navy and Indian Coast Guard.
Written by Shivani Singh
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