Shares of Garden Reach Shipbuilders & Engineers Ltd. (GRSE) surged 4% on February 24 after reports indicated that the company is set to secure a substantial order worth around Rs. 70,000 crore from the P-17 Bravo project, according to NDTV Profit. This major development has boosted investor sentiment, given that GRSE’s current order book stands at Rs. 24,000 crore. The anticipated new orders are expected to significantly enhance the company’s long-term growth prospects.
The company has provided strong guidance, projecting a 25% compound annual growth rate (CAGR) in revenue. GRSE also expects to maintain an 8.5% PAT (Profit After Tax) margin, making its FY27 estimated net profit of Rs. 600 crore an achievable target. Additionally, the order book is expected to rise towards Rs. 40,000 crore from its current sub-Rs. 25,000 crore levels.
A key focus area for GRSE going forward is its export business, which is expected to contribute 10% of its revenue, a significant increase from previous years when exports were negligible. This expansion aligns with the company’s strategic goal of diversifying revenue streams and enhancing its presence in the global shipbuilding sector.
Stock Performance Details
- Current Price: ₹1,371.15
- Previous Close: ₹1,319.20
- Day’s Range: ₹1,272.45 – ₹1,374.45
- 52-Week Range: ₹673.45 – ₹2,833.80
- Market Capitalization: ₹157.17 billion
- P/E Ratio: 39.82
- Dividend Yield: 0.76%
- Average Volume: 990.20K
With an expanding order book and strong growth guidance, GRSE remains a key player in the defense and shipbuilding sector, positioning itself for significant long-term growth.
