Garden Reach Shipbuilders Shares Surge 5% Following ₹491 Crore Acoustic Research Ship Contract from DRDO

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE), a public sector undertaking in India’s defense sector, opened with impressive gains of over 5% on Monday, following the announcement of a major contract from the Ministry of Defence. The stock peaked at Rs 1,870 per share during the day, with a low of Rs 1,822.25. On October 18, 2024, GRSE announced that it had secured a significant contract from the Defence Research and Development Organisation (DRDO) for the design and construction of an Acoustic Research Ship (ARS), valued at approximately Rs 491 crore. The contract was awarded by the Naval Physical & Oceanographic Laboratory (NPOL) and included the project’s design, development, construction, equipment integration, testing, certification, and commissioning, with a completion timeline of 36 months from the signing date.

This Acoustic Research Ship is expected to enhance the capabilities of the Indian Navy, particularly in the areas of underwater acoustics and sonar performance, which are vital for conducting comprehensive oceanographic research that impacts national defense.

October has been a fruitful month for GRSE, which also received two letters of acceptance from the West Bengal government for the design, construction, operation, and maintenance of hybrid electric ferries under the West Bengal Inland Water Transport, Logistics, and Shipping Development (WBIWTLSD) project. This initiative involves constructing 100 non-air-conditioned hybrid electric ferries for cross-river operations, along with 200 twin-deck hybrid electric ferries featuring air conditioning on the main deck, aimed at modernizing the state’s water transport infrastructure and promoting environmentally friendly technologies.

Furthermore, GRSE has signed agreements for the construction and delivery of additional multi-purpose vessels (MPVs) with a capacity of 7,500 deadweight tonnes (DWT), including a contract with Carsten Rehder Schiffsmakler und Reederei GmbH & Co KG, a German shipbuilding firm, for the construction of a fifth vessel of similar tonnage. As of 9:45 am on the National Stock Exchange (NSE), shares of Garden Reach Shipbuilders were trading at Rs 1,836.40, reflecting a gain of over 4%. The stock has delivered multi-bagger returns of over 130% to investors over the past year.

The development of the Acoustic Research Ship is particularly significant as India intensifies its focus on enhancing naval capabilities and research, with underwater acoustics and sonar technology being critical for contemporary naval operations. The introduction of a dedicated vessel for these research initiatives will enable the Indian Navy to conduct in-depth studies and testing in essential fields.

Disclaimer: This communication is for informational purposes only and should not be construed as financial or investment advice. The content provided herein is based on publicly available information and is subject to change. The past performance of Garden Reach Shipbuilders & Engineers Ltd (GRSE) shares does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. The author does not hold any shares in GRSE or any related entities.


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