52-week high alert: Net profit of this ship-building company zooms over 59%; stock jumps 12%

Monday deals close on a mixed note, the Sensex wrapped up the trading session on a positive trajectory, with a modest uptick of 0.12%. Likewise, the Nifty also clinched marginal gains, edging higher by a slight 0.03%.

Navigating through market sentiments, the shares of Garden Reach Shipbuilders & Engineers Limited surged 12.69%, additionally, the stock hits a fresh 52-week high mark of Rs 666.45 per share on BSE. Furthermore, the scrip witnessed a massive spurt in volume by more than 16.19 times. This indicates heavy buying among investors. The reason for this surge was primarily attributed to companies spectacular Q1 performance. Let’s have a look:

Financial Results (Q1 FY2024) - QoQ Comparison

The company’s revenue demonstrated an encouraging 25.79% rise, reaching Rs 756 crore from the previous Q4 FY23 figure of Rs 601 crore. This period also witnessed an impressive upswing in EBITDA, which reached Rs 46 crore, marking a significant 130% increase compared to the performance in Q4 FY23 on a sequential basis. Furthermore, the Profit After Tax (PAT) saw growth, standing at Rs 102 crore, showcasing a notable 34.21% increase. This performance highlights the company’s positive momentum and growth trajectory.

Financial Results (Q1 FY2024) - YoY Comparison

In the initial quarter of FY24, the company’s revenue demonstrated an impressive growth rate of 30.34%, ascending to Rs 756 crore from Rs 121.1 crore in Q1 FY23. Simultaneously, the operating profit experienced a substantial rise of 39.39%, amounting to Rs 46 crore. The net profit displayed remarkable expansion, surging to Rs 102 crore, marking a substantial increase of 59.37%.

Further bifurcating the revenue contributors, the largest contributor is the Shipbuilding segment, accounting for a substantial 89.39% of the revenue. Following the trail, the Bailey Bridge segment contributes 3.42%, while the Diesel Engine segment holds a share of 3.18%. This distribution highlights the company’s strategic allocation of resources across various sectors to ensure a well-balanced and dynamic growth trajectory.

Zooming out to the shareholding pattern, it reveals that the President of India holds a substantial stake of 74.50%. This coincides with the notable trajectory of Foreign Institutional Investors who increased their holdings from 2.68% to 3.11% in the quarter ending June 2023.

Garden Reach Shipbuilders & Engineers Ltd, overseen by the Ministry of Defence, is India’s top shipbuilding company, serving the Indian Navy and Coast Guard.

The stock has witnessed significant buying activity surging more than 243% in the last 2 years.

Keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.