Garden Reach Shipbuilders share price jumps 6% on ₹491 crore contract from Defence Ministry
- Garden Reach Shipbuilders share price rose nearly 6% after receiving a Letter of Intent from the Ministry of Defence for a ₹491 crore contract to develop an Acoustic Research Ship.
Garden Reach Shipbuilders share price jumped nearly 6% on Monday's session, after the company received a Letter of Intent from the Ministry of Defence for a substantial contract valued at ₹491 crore. The Naval Physical and Oceanographic Laboratory, GoI, Ministry of Defence, DRDO, Kochi, has sent a letter of intent for the award of contract for the design, development, construction, integration of equipment, testing, certification, commissioning, and supply of One Acoustic Research Ship (ARS) to the company. Garden Reach Shipbuilders share price today opened at an intraday low of ₹1,800 apiece on the BSE, the stock touched an intraday high of ₹1,870.
“Garden Reach Shipbuilders share price has recently formed a support base around ₹1,500. Downside seems to be limited from here and hence positional traders can look for buying opportunity on some dips with a stop loss below ₹1,500,” said Ruchit Jain, Lead Research Analyst at 5paisa.
The company in an exchange filing stated that the contract will be implemented within 36 months after they are signed.
At the start of this month, two acceptance letters were received by the firm for the contract award to develop, construct, manage, and uphold Hybrid Electric Ferries as a component of the West Bengal Transport Infrastructure Development Corporation Ltd Project under the Transport Department, Government of West Bengal.
In the first quarter ended June 2024, Garden Reach Shipbuilders & Engineers Ltd recorded a 13% increase in net profit, amounting to ₹87 crore. The growth in profit was fueled by a significant 34% upsurge in revenue from operations, reaching ₹1,010 crore as opposed to ₹756 crore in the corresponding period last year.
Cmde Hari PR, the chairman and managing director of Garden Reach Shipbuilders, expressed confidence in the company's growth prospects, highlighting the strong financial performance in Q1 FY25. He emphasized that the company is poised to sustain its growth momentum, underpinned by a solid order book and effective project execution plans.
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