Defence stock in focus after signing ₹123 Cr contract with Govt. for Mauritius Coast Guard ship

This Defence stock engaged in designing, building, and repairing warships, patrol vessels, and support ships for the Indian Navy and Coast Guard, jumped 2 percent after receiving a contract from the Ministry of External Affairs for the refit of the Mauritius Coast Guard Ship CGS Barracuda. 

Stock Price Movement

With a market capitalization of Rs. 15,418.70 crores, the share of Garden Reach Shipbuilders and Engineers Limited has reached an intraday high of Rs. 1,373 per equity share, rising nearly around 1.55 percent from its previous day’s close price of Rs. 1,351.70. Since then, the stock has retreated and is currently trading at Rs. 1,346 per equity share. 

What Happened

Garden Reach Shipbuilders & Engineers Limited (GRSE) has signed a contract with the Ministry of External Affairs, Government of India, for the normal refit of the Mauritius Coast Guard Ship CGS Barracuda. This warship was originally built and delivered by GRSE to Mauritius in 2014. 

The contract is valued at Rs. 123.07 crore plus 15 percent for additional work and will include both services and mandatory spares. The refit will be completed within 10 months after the ship’s availability at GRSE, Kolkata. This project strengthens GRSE’s global partnerships and highlights its expertise in ship maintenance and defence solutions. 

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Strategic Initiatives

GRSE has signed an MoU with the National Highways Infrastructure Development Corporation to supply portable steel bridges, with expected orders for 75 bridges over the next two years. 

Upcoming Projects

Garden Reach Shipbuilders and Engineers Limited (GRSE) is set to build coastal research vessels for the Geological Survey of India. The company has also submitted bids for the Next Generation Corvette (NGC) project, currently under technical evaluation. Additionally, it anticipates Requests for Proposals (RFPs) for naval projects, including P17 Bravo frigates and other vessels. 

Future Outlook

The management aims for a steady 25 percent annual growth from FY23 to FY27, expecting strong revenue and order inflows. They are confident in achieving this target through consistent business expansion and new opportunities. 

Recent quarter results

Garden Reach Shipbuilders and Engineers Limited’s revenue has increased from Rs. 923 crore in Q3 FY24 to Rs. 1,271 crore in Q3 FY25, which has grown by 37.70 percent. The net profit has also grown by 10.20 percent from Rs. 88 crore in Q3 FY24 to Rs. 98 crore in Q3 FY25. 

Written By – Nikhil Naik 

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