desk
Share
News Topical, Digital Desk : Stock to Watch: Shares of Garden Reach Shipbuilders Limited rose another 5% to a new record level on Friday. This is the third consecutive day when the company's shares have seen a rise and the shares have gained in 10 out of the last 11 trading sessions. The company's shares have increased by 66% in the last one month.
Garden Reach shares hit a low of ₹1,180 on March 4 this year, since then the shares have jumped 143% in 52 trading sessions. At the low level of March, the stock was 60% below its previous high of ₹2,833.
After Operation Sindoor in the defense sector, the shares of many defense companies including Garden Reach have seen a tremendous rise. Prime Minister Narendra Modi's initiative to promote "Made in India" defense tools has also strengthened the sector.
Earnings jump Garden Reach recorded a 61% increase in earnings in the March quarter, while EBITDA has jumped 144%. The company's margin has also expanded by 454 basis points. The management has said that the company is likely to reach its peak execution level in the financial year 2026. Also, the delivery of the first P17 Alpha ship is going to be two months ahead of schedule. On Thursday, the company emerged as the lowest bidder (L1) for the construction of Next Generation Corvettes (NGC) for the Indian Navy. Under this project, Garden Reach has been awarded the contract to build five out of eight ships, the total value of which is over ₹25,000 crore. Though the number of analysts on Garden Reach is low, of the five analysts covering the company, three have a "Buy" and two have a "Sell" recommendation. Antique Stock Broking has a target price of ₹3,009 while Asian Market Securities has a target price of ₹3,500. During today's trade, Garden Reach shares hit an intraday high of ₹2,896, and are currently trading 2.7% higher at ₹2,830.
Read More: Grasim Industries Q4 Results: Company's losses decline - dividend announced
--Advertisement--
