Garden Reach Wins $21 Million Contract, Shares Surge 10% To Record
According to Monday's exchange rate, the order from Bangladesh is worth about Rs 175.23 crore in rupee terms.
Shares of Garden Reach Shipbuilders & Engineers Ltd. hit a record high on Monday after it secured an order from Bangladesh worth nearly $21 million.
The company has received the order from the Directorate General, Defence Purchase, Ministry of Defense, and Bangladesh Government for the construction and delivery of an advanced ocean-going tug vessel, according to an exchange filing on Monday. The order's value in rupee terms is approximately Rs 175.23 crore, according to Monday's exchange rate.
Garden Reach Shipbuilders will complete the project in 24 months, the filing said.
The ocean-going tug vessel ships support in open waters to ensure safety and efficiency in challenging offshore situations.
A few weeks ago, the shipbuilder signed another contract with the Government of the People’s Republic of Bangladesh to deliver a trailing suction hopper dredger.
A trailing suction hopper dredger is a kind of ship that maintains navigable waterways and deepens the maritime canals that are silted.
.png?auto=format%2Ccompress)
Shares of the company rose as much as 10% to hit record high of Rs 2,309 apiece. It was trading 9.52% higher at Rs 2,298.90 apiece as of 10:15 a.m. This compares to a 0.24% advance in the NSE Nifty 50 Index.
The stock has risen 297.12% in 12 months and 163.19 on year-to-date basis. Total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 78.80, which implied the stock is overbought.
Out of five analysts tracking the company, three maintain a 'buy' rating and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 45.9%.
