Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a renowned Indian shipbuilding company that operates under the aegis of the Ministry of Defence.
GRSE primarily serves the shipbuilding needs of the Indian Navy and the Indian Coast Guard.
With a market capitalization exceeding Rs 20,000 crore, GRSE stands as a formidable player in the shipbuilding industry.
Significant Export Order: A Milestone for GRSE
Details of the Export Order
Garden Reach Shipbuilders & Engineers Limited (GRSE) recently achieved a significant milestone by securing an export order valued at approximately USD 54 million.
This order is for the construction and delivery of four multi-purpose vessels, marking a significant stride in GRSE’s efforts to solidify its presence in the international shipbuilding market.
Contract with Carsten Rehder Schiffsmakler und Reederei GmbH & Co., KG
The contract for this major project was signed with Carsten Rehder Schiffsmakler und Reederei GmbH & Co., KG, a reputed German firm.
According to the agreement, GRSE will build four multi-purpose cargo vessels, each boasting a deadweight tonnage (DWT) of 7,500.
These robust vessels will measure 120 meters in length, and 17 meters in width, and have a maximum draft of 6.75 meters, each capable of transporting 7,500 metric tonnes of cargo.
Versatile Design of the Vessels
The vessels are designed for versatility, featuring a single cargo hold suitable for bulk, general, and project cargoes.
Additionally, containers can be efficiently placed on the hatch covers for extra cargo transport.
Notably, these ships are engineered to carry multiple large windmill blades on deck, catering to the burgeoning renewable energy sector.
The entire project is slated for completion within 33 months, underscoring GRSE’s prowess in shipbuilding.
GRSE’s Recent Achievements and Contracts
Trailing Suction Hopper Dredger for Bangladesh
Prior to this order, GRSE secured two other significant contracts. On May 16, 2024, GRSE was awarded a contract by the Government of Bangladesh to build a trailing suction hopper dredger with a 1,000 cubic meter hopper capacity.
This contract, valued at USD 1,65,75,210 (excluding taxes), is in the final stages of the agreement. GRSE has already accepted the award, reflecting its commitment to international projects.
Research Vessel for DRDO
Moreover, Garden Reach Shipbuilders & Engineers is the leading contender for constructing a research vessel for India’s Defence Research and Development Organisation (DRDO).
This project, estimated at approximately Rs 500 crore, is still under negotiation. Securing this contract would further augment GRSE’s reputation and capabilities in specialized shipbuilding.
Stock Market Performance and Financial Overview
Recent Stock Surge
GRSE’s recent achievements have positively impacted its stock performance.
Today, the company’s shares surged by 9.54%, reaching an intraday high of Rs 1,919 per share, up from the previous closing of Rs 1,751.85.
This price also marks a fresh 52-week high, with the previous low being Rs 558.60.
Robust Order Book
As of March 31, 2024, GRSE’s order book stands at an impressive Rs 22,652.68 crore.
This substantial order book predominantly comprises orders from the shipbuilding sector, including significant projects such as the P17 Alpha Project valued at Rs 12,174 crore, the survey vessel large project worth Rs 940 crore, the anti-submarine shallow watercraft project valued at Rs 4,886 crore, and the next generation ocean-going petrol vessel at Rs 3,359 crore.
Impressive Returns for Investors
The stock has delivered exceptional returns, emerging as a multi-bagger. From its 52-week low, the stock has surged by 243.5%, and over the past three years, it has witnessed a phenomenal increase of 800%.
These remarkable returns highlight the potential for investors to closely monitor this small-cap stock.
Conclusion
Garden Reach Shipbuilders & Engineers Ltd (GRSE) continues to demonstrate its excellence in the shipbuilding industry with significant achievements and robust financial performance.
The recent USD 54 million export order, coupled with other major contracts, underscores GRSE’s growing influence in the international market.
As the company continues to expand its horizons and deliver exceptional returns to its investors, it stands poised for sustained growth and success.