Shares of GRSE, a warship maker, jumped over 42% in the last three sessions. Meanwhile, in Thursday’s trade, the stock advanced over 7% and hit a new 52-week high of Rs 832.
In its Q1 FY24 results, GRSE reported its best-ever net profit of Rs 77 crore. The firm saw a 54% rise in net profit as compared to the Rs 50 crore it reported in the year-ago period. Meanwhile, its total income stood at Rs 827 crore in the first quarter of the current fiscal, 33% higher than Rs 621 crore in the year-ago period.
Revenue from operations for the quarter under review grew 30% to Rs 756 crore as compared to Rs 580 crore last year. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was Rs 117 crore as against Rs 74 crore, registering a growth of 58%.
“The current fiscal year has started on a very vibrant note for GRSE with the shipyard recording the best-ever quarterly results in the history of the company. The shipyard gears up for the launch of the third Frigate of P17A on August 17… GRSE shall continue to play a major role in encouraging industrial growth,” GRSE Chairman and Managing Director Cmde PR Hari said.
In the meantime, two European defence manufacturing giants are seeking to win a Rs 400 billion ($4.8 billion) order to build submarines in India as the South Asian nation looks to strengthen its navy to counter China’s expanding naval presence in the Indo-Pacific region.
Indian officials are currently evaluating competing bids to build six vessels in the country, senior Indian officials aware of the developments said.India’s Navy will go for the best and largest transfer of technology that is being offered, the people said. When announcing the tender in July, the Ministry of Defence said that it expected substantial technology transfer to Indian shipyards apart from providing the submarines with air-independent propulsion — a technology that helps conventional vessels stay underwater for longer.
At 9.54 am, the scrip was trading 5% higher at Rs 813 on BSE. On a year-to-date basis, GRSE shares surged nearly 70%, while it has delivered multibagger returns of nearly 200% in the last one year.
As per Trendlyne data, the average target price of GRSE is Rs 525, which shows a downside of 35% from the current market prices. The consensus recommendation from three analysts for the stock is a ‘Hold’.
At the same time, Cochin Shipyard shares also surged over 40% in the last three days. In Thursday’s trade, the stock surged 12% and hit a new 52-week high of Rs 904.4.
In the June quarter of FY24, the firm reported a 135% year-on-year (YoY) jump in consolidated net profit at Rs 98.65 crore, compared to Rs 42 crore in the corresponding quarter of last fiscal. Revenue from operations, meanwhile, rose 7.9% YoY to Rs 475.9 crore for the quarter under review as against Rs 440.9 crore in the year-ago quarter.
The company reported an EBITDA of Rs 78.7 crore for the June quarter. Meanwhile, margins during the quarter came in at 16.5%.
At 9.54 am, the stock was trading 10% higher at Rs 887 on BSE. Cochin Shipyards also delivered multibagger returns to its investors as the stock has rallied over 165% in the past one year.
As per Trendlyne data, the average target price of Cochin Shipyard is Rs 682, which shows a downside of 24% from the current market prices. The consensus recommendation from 4 analysts for the stock is a ‘Buy’.
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