Heavy purchases in this shipbuilding stock; bags ordered from Bangladesh Inland Water Transport Authority & L1 order from DRDO

The stock has delivered multibagger returns of 210 percent from its 52-week low and a whopping 700 percent in three years.

On Friday, the shares of Garden Reach Shipbuilders & Engineers Ltd rose 9.50 percent to hit a new 52-week high of Rs 1,687.25 per share from the previous close of Rs 1,541.05. The company’s shares saw a volume increase of over 5.51 times on BSE.

Garden Reach Shipbuilders & Engineers Ltd is a leading shipbuilding company in India, operating under the administrative control of the Ministry of Defense. It mainly caters to the shipbuilding needs of the Indian Navy and Indian Coast Guard. The company has a market capitalization of Rs 18,647 crore.

Garden Reach Shipbuilders & Engineers has won two important contracts. Firstly, on May 16, 2024, they were awarded a contract by the Government of Bangladesh for the construction of a trailing suction hopper dredger with a hopper capacity of 1000 cubic meters, for a total value of USD 1,65,75,210 (excluding taxes). While a final contract is being finalized, the company has already received the award. Secondly, Garden Reach Shipbuilders & Engineers is also spearheading the construction of a research vessel for India’s Defense Research and Development Organization (DRDO), with a project value of around Rs 500 crore. Negotiations on this contract are still ongoing.

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Order book updates: The order book as on March 31, 2024 stands at Rs 22,652.68 crore. This order book mainly consists of orders from the shipbuilding sector worth Rs 22,593 crore, with the P17 Alpha Project worth Rs 12,174 crore, the major research vessel project of Rs 940 crore, the anti-submarine shallow watercraft project of Rs 4,886 crore and the next generation seagoing petrol vessel for Rs 3,359 crore.

The stock has been delivered multibagger returns of 210 percent from 52-week lows and a whopping 700 percent over three years. Investors should keep a close eye on this Kleinkap stock.

Disclaimer: This article is for informational purposes only and not for investment advice.

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