Shares of Garden Reach Shipbuilders & Engineers (GRSE) gained around five percent on July 22 after the company announced that has entered into two non-binding memorandum of understandings (MoUs), which are confidential in nature.
The company has collaborated with Merlinhawk Aerospace and Kerala State Electronics Development Corporation (KELTRON), GRSE said.
The tie-up with Merlinhawk Aerospace is for "collaboration towards development of composite doors and hatches for use in Naval Ships, counter UAV solution using EDFCS along with CRN 91, EOIRST for surveillance, composite masts for Indian Navy ships and hydrogen fuel cells based power generation for maritime applications."
The Kolkata-based defence firm has joined hands with KELTRON to "establish collaborative working arrangement towards development of core futuristic technologies in various fields to achieve self-reliance in certain areas of underwater surveillance." The financial impact of the aforesaid MoUs has not yet been ascertained, GRSE mentioned.
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At 2:03 pm, GRSE shares were trading 4.4 percent higher at Rs 2,565 on the National Stock Exchange (NSE). The multibagger stock has gained 194 percent on a year-to-date (YTD) basis, nearly tripling investor's money so far in 2024.
In the last 12 months, the stock has delivered stellar returns of 322 percent, beating benchmark Nifty's returns of 24 percent during this period.
Shipping stocks surge ahead of Budget 2024
GRSE was not the only shipping stock trading with gains today. Other stocks such as Mazagon Dock, Great Eastern Shipping Company, Cochin Shipyard, Shipping Corporation of India, Seamec, Shreyas Shipping and Logistics, and Garware Marine Industries were also trading with gains of up to five percent amid expectations of positive announcements for the sector in the upcoming Union Budget on July 23.
Reports suggest that the Maritime Development Fund is likely to receive an allocation between Rs 15,000 crore and Rs 20,000 crore, and the Harit Nauka scheme may also be announced.
Also Read | Budget 2024: Shipping industry eyes revamped PLI scheme, green initiatives
If the government allocates funds to the sector, it could greatly enhance development by providing the shipping industry with much-needed access to financial resources like bank credit and foreign investment. This is essential for supporting the country's projected trade and economic growth, said analysts and industry experts.
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