Garden Reach Shipbuilders Expects To End Fiscal With ₹25,000-Cr Order Book
Garden Reach Shipbuilders & Engineers Ltd (GRSE), a prominent player in India's shipbuilding sector, is projected to conclude the fiscal year with an impressive order book valued at approximately ₹25,000 crore. As of August 2024, GRSE's order book stands at ₹25,231 crore, primarily driven by domestic shipbuilding orders, which constitute about 90% of this total.
The majority of GRSE's orders are linked to the Indian Navy and Coast Guard, reflecting the company's strategic focus on defence contracts. Notably, about 85% to 90% of the order book is derived from domestic sources.
The company anticipates securing additional contracts worth between ₹1,500 crore and ₹2,000 crore within the next three to six months. This includes potential export orders and significant bids for projects like the Indian Navy's Corvette order, valued at around ₹36,000 crore.
GRSE has set an ambitious revenue target of ₹10,000 crore by FY30, which represents a significant increase from its recent revenue figures. The company aims to maintain a revenue growth rate of 25% for the current financial year, following a robust 34% year-on-year growth reported in the June quarter.
The stock performance of GRSE has been noteworthy, with shares experiencing substantial gains over the past year. The company's market capitalization currently exceeds ₹20,000 crore, reflecting strong investor confidence and growth potential in the defence sector.
Garden Reach Shipbuilders is on a solid trajectory with a healthy order book and ambitious growth targets, positioning itself as a key player in India's defence shipbuilding landscape.
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