GRSE shares jump 5%, breach Antique's target price; stock up 27% in one week

Shares of Garden Reach Shipbuilders and Engineers Ltd (GRSE), a defence PSU under the administrative control of Ministry of Defence, climbed 5 per cent in Tuesday's trade after the company signed a contract with Carsten RehderSchiffsmakler and Reederei GmbH & Co. KG Germany for the construction and delivery of 7th & 8th Multi-purpose vessel (MPV) of 7,500 DWT, in Hamburg, Germany.

The stock rose 5 per cent to hit a high of Rs 1,790. With this, the stock breached Antique Stock Broking's target of Rs 1,783 (March 21). The defence stock has rallied 27.59 per cent in the past one week and nearly 33 per cent in two weeks.

"This contract is in line with the ‘option agreement’ signed between both the parties, for procurement of four additional MPVs from GRSE. The shipyard will build a total of eight vessels (08) at an approximately order value of 108 MUSD," the Mini Ratna Category I company informed stock exchanges BSE and NSE.

Each MPV will be 120 metres long and 17 metres wide with a maximum draft of 6.75 metres. It can carry 7,500 metric tonnes of cargo. Each vessel would have a single cargo hold to accommodate bulk, general and project cargoes and containers will be carried on hatch covers, GRSE explained.

"These ships have been specifically designed to carry multiple large windmill blades on deck," it added.

The agreement for 7th & 8th MPV was signed between Prasenjit Roy, Deputy General Manager for Commercial Shipbuilding at GRSE and Thomas Rehder, Managing Director for Carsten Rehder, in the presence of PR Hari Chairman & Managing Director at GRSE and Jonas Meinhardt, Managing Director at Carsten Rehder.

Recently, GRSE told stock exchanges that the company has signed MoU with PWD (Roads & Bridges), Nagaland for supply of 08 sets of Double Lane Modular Steel Bridges in the state of Nagaland.

GRSE's Q3 results were in-line with analyst estimates, with robust topline growth along with margin expansion. GRSE is in the midst of the bell curve cycle in shipbuilding, analysts said, who reiterated positive outlook on the stock, led by strong order visibility, which is set to replenish orderbook from FY28.