181% Gain In 1-Yr: PSU Shipping Co Inks MoU With DEMPO Group, Shares Hit 52-Week High

Shares of mid cap shipping sector company Garden Reach Shipbuilders & Engineers (GRSE) on Monday hit fresh 52-week high after the public sector undertaking (PSU) signed a MoU with DEMPO Group to build commercial vessels in three premier shipyards of DEMPO on August 25. Garden Reach Shipbuilders shares soared 75% in last 3-months and soared 181% in last 1-year. Check details below:

Garden Reach Shipbuilders Inks MoU With DEMPO Group, Shares Rally: According to the press release of Garden Reach Shipbuilders available on BSE dated August 25, "This is GRSE's maiden attempt to diversify in a big way in commercial shipbuilding to capture a large market share in construction of commercial vessels, both domestic as well as international."

Among the many firsts, GRSE took the maiden initiative in the country to make the Public Private collaboration model a success story in warship building. Aligning this concept with the emerging commercial shipbuilding market, GRSE is now partnering with M/s V S Dempo Holdings Private Ltd to share their shipbuilding resources with GRSE to build commercial vessels on the west coast, added the company's press release.

P R Hari, Chairman & Managing Director said GRSE brought out that in spite of challenges there is a positive outlook in the global commercial shipbuilding sector. The rise of Chinese competition in recent years and stricter environmental regulations are making it difficult for the Indian shipbuilders to meet the global demand.

According to a research, India's shipbuilding market is estimated to be USD 7.1 Bn in 2023 and is expected to reach USD 8.76 Bn in 2028. The global shipbuilding market on the other hand is estimated to grow from USD 170 Bn to 230 Bn by 2028 at a CAGR of 5.45%. A report also stated that India's contribution to commercial shipbuilding globally is less than 1 percent today which is far lower than 3.5 % achieved during 2007.

Garden Reach Shipbuilders Stock Performance & Return: Current market price of Garden Reach Shipbuilders share is Rs 811.15 per share with intraday gain of 2.78%. Its 52-week high price is Rs 844.45 apiece and 52-week low price is Rs 276.55 apiece, respectively. The company has a market capitalisation of Rs 9291.89 crore. Garden Reach Shipbuilders stock soared 97% in last 6-months only, gained 181% in last 1-year, and jumped a huge 341% in last 2-years.

Garden Reach Shipbuilders Financials: The company for the quarter ended June 30, 2023 declared its standalone total income at Rs 826.54 crore, up 23.16% as against the last quarter total income of Rs 671.09 crore. The company announced its recent quarter net profit after tax at Rs 76.68 crore.

Garden Reach Shipbuilders About: 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. GRSE also built the first ever Indian Export Warship "CGS Barracuda" for Govt. of Mauritius, FPV "SCG PS Zoroaster" to Govt of Seychelles and Ocean-Going Cargo & Passenger Ferry vessel "MV Ma Lisha" for Cooperative Republic of Guyana.

Disclaimer

The stock hit fresh 52-week high after it signed an MoU with DEMPO Group. 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.