Garden Reach Shipbuilders stock rises 10% intraday, here's why

Shares of warship maker Garden Reach Shipbuilders and Engineers Ltd (GRSE) rose over 10% today after the firm said it recorded its highest-ever turnover of Rs 1,750 crore during financial year 2021-22, reflecting a year-on-year (YoY) growth of 53 per cent.

Garden Reach Shipbuilders stock zoomed 10.51% to an intraday high of Rs 254.45 against the previous close of Rs 230.25 on BSE.

Later, the stock closed 6.49% higher  at Rs 245.20.  

Earlier, it opened with a gain of 4.08% at Rs 239.65 today. Total 0.94 lakh shares of the firm changed hands amounting to a turnover of Rs 2.31 crore on BSE.

Market cap of the company rose to Rs 2,808.82 crore.

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The stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. It has gained 29.02% in a year and risen 10% in 2022.

"Despite being a labour intensive industry, the company effectively managed the challenges posed by the COVID-19 pandemic and progressed operations, continuously improving internal efficiencies," said the defence PSU.

Garden Reach Shipbuilders has also declared an interim dividend of Rs 4.95 per equity share for FY22 against Rs 3.85 in FY21, an increase of 28.57 per cent, it added.

Garden Reach Shipbuilders and Engineers Limited is primarily engaged in shipbuilding activities for Indian Navy and the Indian Coast Guard. The company operates through three divisions: Shipbuilding, Engineering and Engine. Its shipbuilding unit is located at Rajabagan Dockyard, Kolkata, India. Its Fitting Out Jetty Unit (FOJ) is primarily used for fitting out and repair of ships.