Garden Reach Shipbuilders Share Price Rises After Company Wins Two Orders
Garden Reach share price rose as much as 2.33% to 1,697.00 apiece.
Garden Reach Shipbuilders and Engineers Ltd.'s share price increased following its announcement on Friday that it had secured two contracts. The first contract, worth approximately Rs 226.18 crore from the Transport Department of the Government of West Bengal, is to design, construct, operate, and maintain hybrid electric ferries as part of the West Bengal Integrated Water Transport and Logistics Development Project.
Garden Reach expects to execute the purely domestic contract within 30 months of the contract's effective date.
Separately, Garden Reach also said it has signed a contract for the construction and delivery of the fifth multi-purpose vessel in a series of eight, each with a deadweight tonnage of 7,500. The agreement was finalised with Germany's Carsten Rehder Schiffsmakler and Reederei GmbH & Co., marking a significant step in GRSE's commitment to expanding its export capabilities.
This contract, valued at approximately $108 million, aligns with an earlier option agreement for the procurement of four additional MPVs. Each vessel will measure 120 meters in length and 17 meters in width, featuring a maximum draft of 6.75 meters. Designed to accommodate a variety of cargo types, these vessels will have a single cargo hold suitable for bulk, general, and project cargo, with the ability to transport containers on hatch covers. Notably, the ships are specifically engineered to carry large windmill blades on deck.
GRSE, established in 1884 and operating under the Ministry of Defence, has a long history as a prominent shipbuilding entity in India. It has built over 790 platforms, including 109 warships for the Indian Navy and Coast Guard.
Shares of the company rose as much as 2.33% to 1,697.00 apiece. It gave up gains to trade 0.85% higher at Rs 1,672.50 apiece as of 12:50 p.m. This compares to a 0.39% decline in the NSE Nifty 50 index.
The stock has risen 107.43% in the last 12 months. Total traded volume so far in the day stood at 0.48 times its 30-day average. The relative strength index was at 38.
Out of four analysts tracking the company, two maintain a 'buy' rating and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 5.7%.
