Garden Reach Shipbuilders (GRSE) enjoyed another bullish day as the PSU’s stock surged 18% to reach a new all-time high of ₹2,065 apiece during today’s intraday trade, before closing the session with a 11% gain at ₹1,946.
Today’s rally pushed the stock’s gains to multibagger returns of 123% in CY24 so far. This remarkable rally builds on the stock’s steady gains over the last three years, ending CY23 with an 80% increase. It rose 117% in CY22, and 15% in CY21.
Steady order wins have bolstered investor confidence in the company, pushing the stock price higher each month. On Saturday, the company secured a $54 million order for the construction and delivery of four 7,500 DWT multi-purpose vessels for German firms Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG. The contract also includes an option to build an additional four ships in the near future.
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Earlier in June, the company entered into a contract with the Bangladesh Inland Water Transport Authority (BIWTA) for the procurement of one trailing suction hopper dredger (with a hopper capacity of 1000 m3) along with spare parts.
Additionally, the company emerged as the lowest bidder (L1) for constructing a research vessel for the Defence Research and Development Organisation (DRDO). The order value is expected to be approximately Rs. 500 crore, although the contract is currently under negotiation and has not yet been signed.
In mid-May, the company received a notification of award for an order valued at $16.6 million from the government of Bangladesh for one trailing suction hopper dredger with spare parts.
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Apart from steady order wins, the company’s strong financial performance in Q4 and FY24 has also boosted the stock’s value. Its revenue from operations reached ₹1,016 crore in Q4 FY24, compared to ₹601 crore in the previous year, marking a growth of 69%.
Profit After Tax (PAT) stood at ₹112 crore in Q4 FY24, up from ₹55 crore the previous year, registering a growth of 104%.
The company achieved its best-ever financial performance in FY24, with revenue from operations increasing to ₹3,593 crore from ₹2,561 crore in FY23, a growth of 40%, while the PAT rose to ₹357 crore in FY24, compared to ₹228 crore in FY23, reflecting a growth of 57%.
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The company is one of India’s leading warship builders, and was taken over by the Government of India in 1960. It became the first shipyard in independent India to build a warship, the Seaward Defence Boat (SDB) INS Ajay, in 1961.
GRSE has built over 790 platforms, including 109 warships for the Indian Navy, Indian Coast Guard, and friendly foreign countries, the highest number by any Indian shipyard.
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Besides shipbuilding and repair, GRSE is also involved in engine production and various engineering activities, including manufacturing deck machinery items, prefabricated portable steel bridges, and marine pumps.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions
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Published: 25 Jun 2024, 06:29 PM IST
