The shares of the premier warship builder rose 7 percent to reach an all-time price of Rs 844.45 apiece after the company signed an MOU with DEMPO group to build commercial vessels.
At 1:15 p.m., On the National Stock Exchange, Garden Reach Shipbuilders & Engineers Ltd. shares were trading at Rs 803.70 a share, up Rs 14.75 or 1.87 percent, with a market value of Rs 9,209 crores.
According to the company’s exchange filing,Garden Reach Shipbuilders and Engineers Ltd signed a Memorandum of Understanding (MoU) with the DEMPO Group, the leading business house of Goa, to launch a collaboration model to build commercial vessels in three premier shipyards of DEMPO at Goa and Bhavnagar.
Garden Reach Shipbuilders and Engineers took the country’s first attempt to make the Public-Private Partnership model in warship building. In order to align with the developing commercial shipbuilding sector, the Company has formed a partnership with M/s V S Dempo Holdings Private Ltd to pool shipbuilding resources with GRSE in order to build commercial boats on the West Coast.
Garden Reach Shipbuilders & Engineers has delivered multibagger returns of 167 percent over a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 2.67 lakhs after a year. And in the last six months, the stock has gained 94 percent.
The company’s revenue has increased by 30 percent year on year, from Rs 579 crore in Q1FY23 to Rs 755 crore in Q1FY24. During the same period, Net profit increased by 52 percent from Rs 50 crore to Rs 76 crore.
The company’s profitability ratios have marginally improved, with a return on equity at 16.13 percent and a return on capital employed at 20.30 percent.
As per the latest shareholding pattern, The Garden Reach Shipbuilders & Engineers promoters hold 74.5 percent of the company, while Domestic institutional investors hold 7.46 percent and retail investors hold 14.93 percent.
Garden Reach Shipbuilders & Engineers Ltd is a major shipbuilding company in India that is administered by the Ministry of Defence. It primarily serves the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.
Written by Omkar Chitnis
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