GRSE Stock Soars 123% in 2024: Will it DOUBLE Your Money?

CONTENTS: GRSE Stock Soars 123% in 2024

Garden Reach Shipbuilders (GRSE) experienced a bullish day, with its stock soaring 18% to a new all-time high of ₹2,065 per share during intraday trade, and closing with an 11% gain at ₹1,946. This rally has resulted in a remarkable 123% increase in CY24 so far.

The stock has shown consistent gains over the past three years, with an 80% rise in CY23, a 117% increase in CY22, and a 15% rise in CY21. Continuous order wins have boosted investor confidence, driving the stock price higher each month.

Recently, the company secured a $54 million order to construct and deliver four 7,500 DWT multi-purpose vessels for German firms Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG, with an option to build an additional four ships in the future.

In early June, Garden Reach Shipbuilders (GRSE) signed a contract with the Bangladesh Inland Water Transport Authority (BIWTA) to procure a trailing suction hopper dredger with a hopper capacity of 1000 m³, along with spare parts.

Moreover, GRSE has emerged as the lowest bidder (L1) for the construction of a research vessel for the Defence Research and Development Organisation (DRDO). The order is estimated to be worth approximately ₹500 crore, although the contract is still under negotiation and has not yet been finalized.

In mid-May, GRSE received a notification of award from the government of Bangladesh for an order valued at $16.6 million to provide a trailing suction hopper dredger along with spare parts.

In addition to consistent order wins, Garden Reach Shipbuilders (GRSE) has seen its stock value surge due to strong financial performance in Q4 and FY24. The company’s revenue from operations in Q4 FY24 reached ₹1,016 crore, a 69% increase from ₹601 crore in the previous year. Profit After Tax (PAT) in Q4 FY24 was ₹112 crore, up 104% from ₹55 crore the previous year.

GRSE achieved its best-ever financial performance in FY24, with revenue from operations rising to ₹3,593 crore from ₹2,561 crore in FY23, a 40% growth. The PAT increased to ₹357 crore in FY24, compared to ₹228 crore in FY23, reflecting a 57% growth.

Garden Reach Shipbuilders (GRSE) 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 construct 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 nations, the highest number produced by any Indian shipyard.

In addition to shipbuilding and repair, GRSE is involved in engine production and various engineering activities, such as manufacturing deck machinery items, prefabricated portable steel bridges, and marine pumps.