Shares of Garden Reach Shipbuilders & Engineers (GRSE) extended their rally on Thursday, March 20, rising over 7 percent to Rs 1,760 after the company signed a fresh Memorandum of Understanding (MoU). This follows a 20 percent surge in the stock on Wednesday.
The state-owned defence shipbuilder announced a deal with PWD Nagaland for the supply of eight double-lane modular Steel bridges to improve infrastructure in the state. This adds to Garden Reach’s growing portfolio, having previously delivered modular bridges to the Border Roads Organisation (BRO), the National Highway Infrastructure Development Corporation Ltd. (NHIDCL), several state governments, and neighbouring countries like Bhutan, Nepal, Myanmar, Sri Lanka, and Bangladesh. The company has supplied over 5,800 modular bridges to date.
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Beyond infrastructure projects, Garden Reach is making strides in naval shipbuilding. The company recently completed Contractor Sea Trials for two warships—Himgiri and Androth—both set to join the Indian Navy.
It delivered a solid performance in the December quarter, posting robust revenue and profit growth alongside margin expansion. The company’s revenue jumped 37 percent year-on-year to Rs 1,271 crore, while net profit rose 12 percent to Rs 98 crore. EBITDA surged 55 percent to Rs 75.63 crore, with margins improving by nearly 70 basis points to 5.95 percent from 5.27 percent in the same period last year.
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The momentum in defence and shipbuilding stocks has been broad-based. Peers like Mazagon Dock and Cochin Shipyard also surged on Wednesday, buoyed by comments from Fincantieri CEO Pierroberto Folgiero, who highlighted India’s rising prominence as a global shipbuilding hub. Fincantieri is among the world's largest shipbuilders, and its endorsement has further fueled investor optimism toward the sector.
At about 11 am, shares of the company were trading at Rs 1,7254, higher by 5 percent from the last close on the NSE. GRSE shares have rallied a staggering 35 percent in just a week.
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