Defence Stocks: Shares galloped as soon as order of ₹ 25000 crore was received, rapid rise even in falling market:

News Topical, Digital Desk : Garden reach share price: Government defense company Garden Reach Shipbuilders said in an exchange filing on Thursday that it has become the lowest bidder for an Indian Navy project. The company has placed the lowest bid to build Next Generation Corvettes (NGC). Under this project, the lowest bidder will get an order to build five NGC ships, worth more than ₹ 25,000 crore.

The bids were opened in a meeting of the Commercial Negotiation Committee of the Ministry of Defense, in which Garden Reach emerged as the lowest bidder.

The company had mentioned the Next Generation Corvette project in its earnings call earlier this week. Garden Reach had said that the total cost of this project could be ₹ 40,000 crore, which would be divided between two shipyard companies. The shipyard that placed the lowest bid was likely to get an order of ₹ 25,000 crore. The company also said that it plans to increase its shipbuilding capacity. By the end of 2025, Garden Reach wants to take its shipbuilding capacity from 24 to 28 ships. Defense stocks are seeing a boom after Operation Sindoor. After this operation, Prime Minister Narendra Modi emphasized on Made in India defense equipment.

GRSE's excellent performance Garden Reach Shipbuilders (GRSE) earned a profit of Rs 527 crore in FY25, which is 48% more than last year. Profit in the fourth quarter rose from Rs 112 crore to Rs 244 crore, a growth of 118%. GRSE shares rose 30% in 2025 and saw a gain of 118% in the last one year. GRSE CMD Commodore PR Hari (Retd) said, "Our order book is strong. Commercial shipbuilding and maturity of projects are expected to lead to better performance this year." The company has set a target of 20-25% annual growth over the next five years. Three state-of-the-art warships for the Indian Navy under the P-17 Alpha project are expected to be delivered by August 2025, which will boost FY27 income.

Share performance Shares of Garden Reach Shipbuilders have hit an intraday high. It was seen trading above Rs 2600 per share with a gain of over 4%. The stock is approaching its 52-week high of Rs 2,833. The stock has gained 50% in the last one month.