Shares of this small-cap Defence stock gained up to 4 percent after launching an Autonomous Underwater Vehicle (AUV) today. The company’s stocks are trading near their 52-week high levels.
With a market capitalization of Rs 7,100 crores, the stocks of Garden Reach Shipbuilders & Engineers Limited (GRSE) closed at Rs 618.70 in Friday’s trading session. The scrip witnessed an intra-day high of Rs 632 indicating a gain of around 4 percent as compared to the previous closing levels of Rs 607.85 apiece.
Keeping a purview of one year, the scrip has proven to deliver multibagger returns of 142 percent. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.42 Lakhs within a period of one year.
In a recent filing with the Bombay Stock Exchange (BSE) dated 28th July 2023, the company announced the launch of an Autonomous Underwater Vehicle (AUV) which the company developed in collaboration with M/s Aerospace Engineering Private Limited (AEPL).
The vehicle can be used for mine detection, underwater inspection, rescue & search missions, scientific explorations, and many other purposes. By the end of this year, the company plans to unveil its Unmanned Surface Vessel (ASV) and ship-based Unmanned Aerial Vehicle (UAV).
Digging into the financials of the company, the basic indicators for the smooth flow of business such as the operating revenues and after-tax profits increased in recent years. The operating revenues went up from Rs 1,757 crores during FY21-22 to Rs 2,561 crores during FY22-23, and, the after-tax profits, during the same time period, took a shift from Rs 189 crores to Rs 228 crores.
Additionally, the profitability metrics such as the return on equity (RoE) showed decent growth from 15.06 percent during FY21-22 to 16.13 percent during FY22-23. The return on capital employed (RoCE), in congruence with the pattern, moved up from 19.31 percent to 20.30 percent.
Garden Reach Shipbuilders & Engineers Limited is a shipbuilding company based in India that is primarily engaged in the business of constructing commercial vessels. The company also supplies fishing trawlers, motor cutters, fire floats, and many other products to a wide range of its customers.
Written by Amit Madnani
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