Why Garden Reach Shipbuilders shares rose 6% in early deals today

Shares of shipbuilder Garden Reach Shipbuilders and Engineers (GRSE) rose nearly 6% on Thursday after the defence firm said it has emerged as the lowest bidder for over Rs 25,000 crore worth of contract to build eight next generation Corvettes for the Indian Navy. The multibagger stock zoomed 5.63% to Rs 2641 on BSE. Market cap of the firm stood at Rs 29,904 crore. On BSE, around 2.90 lakh shares changed hands amounting to a turnover of Rs 74.87 crore. 

The multibagger defence stock climbed 119% in a year and rallied 445% in three years.

GRSE had attended the Commercial Negotiation Committee (CNC) meeting convened by the Defence Ministry for eight Next Generation Corvettes (NGC) on May 21.

"During the meeting, the Commercial bids were opened and it was noted that GRSE become the Lowest bidder (L1) for Construction of Next Generation Corvettes (NGC) for Indian Navy. The L1 bidder will be awarded five NGC ships at a likely value of more than Rs 25,000 crore," the company filing said.

In Q4 of the last fiscal, net profit climbed 118.9% year-on-year (YoY) to Rs 244.2 crore for the fourth quarter that ended March 31, 2025 against a net profit of Rs 111.6 crore in the year ago period.

The company's revenue from operations climbed 61.7% YoY to Rs 1,642 crore against Rs 1,015.7 crore in the March 2024 quarter. EBITDA rose 141.8% to Rs 219 crore in Q4 over Rs 90.6 crore a year ago.

Earnings per share (EPS) for Q4FY25 came at Rs 21.32 against Rs 9.74 in Q4FY24.

The board also recommended a final dividend of Rs 4.90 per equity share for FY25, subject to the approval of the shareholders. 

Garden Reach Shipbuilders& Engineers is mainly engaged in the construction of warships.