The announcement on Monday that Garden Reach Shipbuilders & Engineers had secured a Letter of Intent (LoI) for an order valued at around ₹491 crore from the Ministry of Defence resulted in a nearly 3% increase in the company’s share price. The share price of Garden Reach Shipbuilders reached an intraday high of ₹1,870 and was currently trading at ₹1833.70.
A total of almost 0.97 lakh shares, or Rs 17.21 crore, were traded on the BSE. The defense stock, which is a multibagger, has increased by 122% in a year and by 287% in two years. With a one-year beta of 1.4, Garden Reach Shipbuilders’ stock indicates significant volatility throughout that time. On October 26, 2023, Garden Reach Shipbuilders’ shares dropped to Rs 648.05, their 52-week low.
Impact on Garden Reach share price
The announcement of GRSE’s several contracts and its ₹491 crore agreement with NPOL is anticipated to boost investor confidence and may cause the price of Garden Reach shares to rise. The company’s ability to land contracts in a variety of industries, including the commercial and defense sectors, demonstrates its rising market presence and competitive advantage. Garden Reach Shipbuilders & Engineers Ltd. is well-positioned to solidify its status as a major participant in the shipbuilding sector with a consistent stream of contracts. An important turning point for the business is the ₹491 crore acoustic research ship project, which is expected to improve its long-term growth trajectory.
Garden Reach Financial Result
Garden Reach Shipbuilders & Engineers Ltd reported a 13% increase in net profit, or ₹87 crore, for the first quarter that concluded in June 2024. The substantial 34% increase in operating income, which came to ₹1,010 crore from ₹756 crore in the same period the previous year, drove the increase in profit.
The chairman and managing director of Garden Reach Shipbuilders, Cmde Hari PR, highlighted the company’s impressive financial results in Q1 FY25 to demonstrate his confidence in the company’s growth prospects.
