Rs 1.44 Dividend: Defence PSU Wins Order From B’desh Govt, Shares Jump 301% In 1-Yr

Mid cap Aerospace & Defence sector PSU Garden Reach Shipbuilders & Engineers (GRSE) shares gained 9.92% intraday today on BSE soon after the company informed about signing a contract for Construction of an Advanced Ocean-Going Tug for Government of the People's Republic of Bangladesh. Current market price of Garden Reach Shipbuilders share on BSE is Rs 2307.80 per share with intraday gain of 9.92%. Garden Reach Shipbuilders share offered attractive return of 68% in last 1-month only and gained 185% in last 3-months. The PSU has market capitalisation of Rs 26,436.31 crore. The defence PSU on May 22, 2024 recommended a final dividend of Rs 1.44 per equity share and yet to announce the record date. Check key details below:

Garden Reach Shipbuilders Bags Order From Bangladesh Govt, Shares Zoom: As per the regulatory filing of the company issued as on July 01, 2024, "Keeping up the tempo in the arena of Defence Exports, Garden Reach Shipbuilders & Engineers (GRSE) Ltd signed an agreement with the Directorate General Defence Purchase, Ministry of Defence, Government of the People's Republic of Bangladesh today for the construction of an advanced Ocean-Going Tug. A few weeks ago, GRSE had signed another contract with Bangladesh for delivery of a Trailing Suction Hopper (TSH) dredger. More recently, on June 22, 2024, GRSE entered into a contract with a German company for the delivery of at least four multi purpose cargo vessels." The approximate consideration or size of the order is 21 million and the time period by which the order needs to be executed is 24 months.

Garden Reach Shipbuilders Share Performance: The 52-week high price of GRSE share on BSE is Rs 2309.50 per share (as on 01/07/2024) and 52-week low price is Rs 558.60 per share (as on 04/07/2023). Garden Reach Shipbuilders shares soared offered return of 31.7% in last 1-week only, gained 164% in last 6-months, offered return of 301% in last 1-year, and stunning returns of 944% in last 2-years.

Garden Reach Shipbuilders & Engineers (GRSE) Dividend: As per the BSE filing of the PSU dated May 22, "Board of Directors of the Company has recommended a final dividend of ~1.44 per equity share, in addition to interim dividend of H.92 per equity share paid, for the Financial Year 2023-24, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of its declaration at the 108th AGM of the Company."

Garden Reach Q4: Garden Reach Shipbuilders & Engineers (GRSE) on May 22 declared a surge of 104% year-on-year (YoY) to Rs 112 crore for the quarter ended March 2024 as compared to Rs 55 crore announced in the corresponding quarter of last year. The PSU declared its revenue from operations at Rs 1016 crore for Q4FY24, up 69% as compared to Rs 601 crore declared in corresponding quarter of last year. The March 2024 quarter EBITDA of Garden Reach surged 166 crore, up 84% from Rs 90 crore declared in March 2023. Meanwhile, profit before tax (PBT) declared at Rs 153 crore for the quarter under review, up 101% as against Rs 76 crore declared the corresponding quarter of last year.

Garden Reach Shipbuilders About: The journey of Garden Reach Shipbuilders & Engineers Ltd., a premier Warship building Company in India, under the administrative control of Ministry of Defence, a PCMM Level-2 Certified Company, dates back to 1884 when it started its journey as a small workshop to repair vessels of River Steam Navigation Company. The Company was taken over by the Government of India in 1960. GRSE has the distinction of becoming the first shipyard of independent India to build a warship for Indian Navy, the Seaward Defence Boat (SDB) INS Ajay, way back in 1961.

Disclaimer:

The company bagged order from Bangladesh Govt. It is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.