Rs 7.92/Share Dividend: PSU Defence Stock Rises By 100%, Sets Record Date For Rs 90.73 Crore Payout; BUY?

Aerospace and defence stock, Garden Reach Shipbuilders & Engineers (GRSE) closed over 100% higher from its 52-week low on Tuesday. The smallcap's stock is slightly shy away from the Rs 800 mark. The stock witnessed a healthy bullish trend on the recommendation of an interim dividend to the tune of Rs 7.92 per share. While Q3 earnings were healthy.

GRSE Share Price:

On BSE, GRSE's share ended at Rs 798.45 apiece, up by Rs 24.95 or 3.23% with a market cap of Rs 9,146.40 crore.

From its 52-week low of Rs 398.75 apiece, currently, the stock is trading higher by 100.23%. Its 52-week high is at Rs 973.95 apiece.

GRSE Dividend:

The company declared an Interim Dividend for the Financial Year 2023-24 at a staggering Rs 7.92/- per equity share of the face value of Rs 10/- each, amounting to Rs 90.73 crore, out of profits of the Company for the nine months ended 31st December 2023.

Further, the Board of Directors has fixed Friday, 23 Feb 2024 as the Record Date for determining the shareholders entitled to receive the Interim Dividend for FY 2023-24.
GRSE has a dividend yield of 0.78% from its current market price. In FY23, the company paid dividends up to 62% amounting to Rs 6.2 per share.

GRSE Q3 Results:

In Q3FY24, the company earned a net profit of Rs 88.25 crore, registering growth from Rs 80.73 crore in Q2FY24 and Rs 63.92 crore in Q3FY23.

Meanwhile, revenue from operations was at Rs 923.09 crore in Q3FY24, recording an upside from Rs 698.60 crore in Q3FY23 and Rs 897.91 crore in Q2FY24.

GRSE Share Analysis:

The average target price for GRSE is Rs 723 apiece, down by 9%, as per Trendlyne data. The consensus recommendation from 2 analysts for Garden Reach Shipbuilders & Engineers Ltd. is HOLD. EPS is expected to grow by 12.5% in FY24.

Some of the fundamentals for GRSE stock analysis as per Trendlyne website are:

- Stock Price rose 80.29% and underperformed its sector by 28.55% in the past year.

- Debt to Equity Ratio of 0.21 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding remained the same in the last quarter at 5.25%.

- Interest Coverage Ratio is 54.14, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Promoter Share Holding stayed the same in the most recent quarter at 74%.

- Promoter Pledges are zero.

- Return on Equity(ROE) for the last financial year was 16.13%, in the normal range of 10% to 20%.

- Price to Earning Ratio is 30.36, lower than its sector PE ratio of 32.67.

GRSE is currently executing three warship-building projects for the Indian Navy & one for the Indian Coast Guard worth approximately Rs. 25,000 Crore including a Prestigious P17A Project for three Advanced Frigates and two projects won on competitive.

Disclaimer: The stock highlights dividends and Q3 results, and 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 any losses. Please consult a professional advisor.