Garden Reach Share Price Soars 9% on Securing Rs 451 Crore Contract

Garden Reach Shipbuilders & Engineers share price surged by over 9% on Monday, June 24, reaching a high of ₹1,796.55 per share on the BSE. This increase in buying interest followed the company's announcement of a contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co. for the construction and delivery of multi-purpose vessels. This positive development helped the stock break a three-day losing streak.

At approximately 9:34 am IST, Garden Reach Shipbuilders & Engineers share price had risen by 7.94%, or ₹130.55, to trade at ₹1,775.7 per share on the BSE. 

"We wish to inform you that the Company has signed the contract for construction and delivery of multi-purpose vessels," the filing read. According to the filing, the order is for the construction and delivery of four multi-purpose vessels, each with a capacity of 7,500 DWT. The total value of the order is ₹451.23 crore, and it is to be completed within 33 months.

The vessels will measure 120 meters in length and 17 meters in width, with a maximum draft of 6.75 meters. Each vessel will have the capacity to carry 7,500 metric tonnes of cargo. They will feature a single cargo hold designed to accommodate bulk, general, and project cargoes, with containers being carried on hatch covers. The ships are specifically designed to transport multiple large windmill blades on deck.

The aero defence company has been a trailblazer in exporting warships. In 2014, Garden Reach Shipbuilders & Engineers exported the CGS Barracuda, an Offshore Patrol Vessel, to Mauritius, marking India's first warship export. In 2021, the company exported the Fast Patrol Vessel PS Zoroaster to the Seychelles. Earlier this year, PS Zoroaster returned to Garden Reach Shipbuilders & Engineers for a refit, which was completed in record time.

The shipyard is currently working on six patrol boats and a TSH dredger for the Government of Bangladesh. In 2023, Garden Reach Shipbuilders & Engineers delivered the MV Ma Lisha, a passenger-cum-Annexure-I cargo ocean-going ferry, to the Cooperative Republic of Guyana. It is now the largest and most advanced ferry in the country.

Over the past year, shares of Garden Reach Shipbuilders & Engineers have delivered impressive returns of over 179%, significantly outperforming the Nifty50's 25% increase.

Garden Reach Shipbuilders & Engineers Ltd. is an India-based warship building company operating under the administrative control of the Ministry of Defense. The company primarily serves the shipbuilding needs of the Indian Navy and the Indian Coast Guard. Its divisions include the ship division, engineering division, and engine division. To date, it has built over 785 platforms, including 108 warships for the Indian Navy, Indian Coast Guard, and foreign countries.

Garden Reach Shipbuilders & Engineers Ltd. has designed and built various types of warships, including frigates, anti-submarine warfare corvettes, fleet tankers, and landing ship tanks (large), among others. The company provides both defense and commercial ship repair services. Its engineering products include prefabricated steel bridges of various ranges and types, as well as various deck machinery items. Additionally, the company is engaged in engine production and other engineering activities, including the assembly, testing, and overhauling of MTU diesel engines and the manufacturing of diesel alternators.