Multibagger Defence PSU To Sell After 89% Rally In 2024, ICICI Securities Sets Rs 515 Target Price

Mid cap Aerospace & Defence sector PSU Garden Reach Shipbuilders & Engineers (GRSE) shares today witnessed marginal rally of 0.04% on BSE after the company bagged several orders. Last trading price of Garden Reach Shipbuilders & Engineers shares on BSE is Rs 1658.55 per share. GRSE shares witnessed steep decline of 37.83% in last 3-months and surged 89.9% year-to-date. The company's market capitalisation stood at Rs 18,999.02 crore. Earlier this year, GRSE's Board recommended a final dividend of Rs 1.44 per equity share on May 22, 2024 and set September 13, 2024 as the record date. Check details below:

Garden Reach Shipbuilders & Engineers Bags Several Orders: The company bagged the order from West Bengal government. The order is worth Rs 226.18 crore and has to be executed in 30 months from the effective date of entering into the contract. As per the BSE filing of GRSE dated October 4, 2024, "in terms of Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "SEBI Listing Regulations"), we wish to inform you that the Company has received two letters of Acceptance of Award for Contract for Design, Build, Operation and Maintenance of Hybrid Electric Ferries under the WBIWTLSD Project, Transport Department, Government of West Bengal."

GRSE Signs Contract For 5th Of 08 Multi-purpose Export Vessels: Earlier on October 3, 2024, "Garden Reach Shipbuilders & Engineers Ltd (GRSE) signed an agreement with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany on Thursday, October 03, 2024, for the construction and delivery of 5th Multi-purpose vessel (MPV) of 7,500 DWT. This contract isin line with the 'Option Agreement' signed between both the parties, for procurement of four additional MPVs from GRSE. The shipyard will build a total of eight vessels (08) at an approx. order value of 108 M USD."

Garden Reach Shipbuilders Shares Performance: The 52-week high price of GRSE share on BSE is Rs 2834.60 per share (as on 05/07/2024) and 52-week low price is Rs 648.05 per share (as on 26/10/2023). Garden Reach Shipbuilders shares surged 86.86% in last 6-months, rose 104% in last 1-year, and rallied 346% in last 2-years. GRSE shares surged 769% in last 3-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 Rs 1.44 per equity share 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." The 108th AGM will be held on September 20, 2024.

ICICI Securities Recommends Sell Call: Despite multibagger returns of 104% in last 1-year, ICICI Securities sought to assign sell call to GRSE shares with target price of Rs 515 apiece. The analyst highlighted expected delays in order execution from Bangladesh due to the recent geopolitical tensions as a leading factor in its decision.

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.

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