On March 25, 2025, shares of Garden Reach Shipbuilders and Engineers (GRSE) surged by 5.01 per cent, reaching an intra-day high of ₹1,790 on the National Stock Exchange (NSE). This upswing was prompted by a significant contract announcement made by the company. On March 24, 2025, GRSE confirmed that it had signed a contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co KG, a German firm, for constructing Multi-purpose vessels (MPV) in Hamburg.
The contract entails the construction and delivery of the 7th and 8th MPVs, each with a cargo capacity of 7,500 DWT. According to the company, “Garden Reach Shipbuilders and Engineers (GRSE) signed a contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co KG, Germany, on Monday, March 24, 2025, for the construction and delivery of the 7th and 8th Multi-purpose vessels (MPV) of 7,500 DWT in Hamburg, Germany.” This contract aligns with an ‘Option Agreement’ already established between both parties for the procurement of four additional MPVs.
In total, the shipyard will build eight vessels valued at approximately $108 million. Each MPV is designed to be 120 meters long, 17 meters wide, and has a maximum draft of 6.75 meters, which allows it to transport up to 7,500 metric tonnes of cargo. GRSE, a Defence Public Sector Undertaking operating under the administrative control of the Ministry of Defence, has been recognized as a Miniratna Category I company since 2006.
To date, the company has successfully constructed over 790 platforms, including 110 warships for the Indian Navy and the Indian Coast Guard, in addition to providing service to foreign nations. This latest project signifies GRSE's continued growth and development in the shipbuilding industry.
Following the announcement, there was a notable performance of GRSE stocks. By approximately 1:09 PM on March 25, 2025, shares were quoted at around ₹1,722.30, reflecting an increase of 1.04 per cent from the previous close of ₹1,704.55. The company currently boasts a market capitalization of ₹19,665.14 crore on the NSE, with shares having appreciated nearly 30 percent in the last month alone. For context, in recent trading, the benchmark Nifty50 index has seen a slight decline of 0.27 per cent year-to-date.
The 52-week range for GRSE shares reached from ₹2,833.80 to ₹762.15, showcasing the volatile yet promising nature of this stock. In a market where most stocks are experiencing fluctuations, GRSE has become a standout performer, particularly drawing attention following its latest contract win.
Investors are optimistic about GRSE's growth trajectory, particularly given its expanding contract pipeline. With the global demand for multi-purpose vessels on the rise, this contract with a respected entity like Carsten Rehder Schiffsmakler and Reederei GmbH & Co KG positions GRSE advantageously for future opportunities.
Overall, the shipbuilder's recent performance reflects a rejuvenated confidence in the Indian public sector's capability to compete in global markets. As stakeholders keep a close watch on developments in the shipbuilding sector, GRSE’s strategic moves and performance will undoubtedly be a focal point in financial news going forward.
