PSU Defence Stock Tanks 5% Despite 17% Rise In Q4 PAT

Shares of Garden Reach Shipbuilders & Engineers (GRSE) declined 4.91% to Rs 458.55 apiece on Thursday. GRSE on May 24 declared its profit after tax (PAT) at Rs 55.3 crore for the March quarter, up 17% against Rs 47.2 crore declared in the corresponding quarter a year ago. The board of directors of GRSE recommended a final dividend of Re 0.70 per equity share for FY 2022-23. GRSE also bagged a huge order today from Indian Navy. Check Details below:

Garden Reach Shipbuilders & Engineers Declares Dividend: According to the BSE filing of the company, “the Board of Directors of the Company has recommended a final dividend of Re 0.70 per equity share, in addition to interim dividend of Rs 5.50 per equity share paid, for the Financial Year 2022-23, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of its declaration at the 107th AGM of the company.”

GRSE Q4: Revenue soared 11% YoY to Rs 601 crore. earnings before interest, tax, depreciation and amortisation (EBITDA) tumbled 39% to Rs 20 crore against Rs 33 crore announced in the corresponding quarter of last year.

The company stated, “Our financial performance during FY2022‐23 was the best ever in the company’s history”. Meanwhile, for financial year 2022-23, GRSE’s revenues jumped 46% to Rs 2,561 crore. EBITDA has been declared 6% higher at Rs 148 crore. However, EBITDA margins declined to 5.8% against 8% in same quarter of last year.

Garden Reach Shipbuilders & Engineers Stock Performance & Return: Current market price of GRSE is Rs 460.70 per share on BSE. The stock’s 52-week high price is Rs 556.80 per share and 52-week low price is Rs 207.75 per share, respectively. The company has a market capitalisation of Rs 5,277.41 crore. Garden Reach Shipbuilders share fell 6% in last 6-months, gave return of 71% in last 1-year, 149% in last 2-years, and 241% in last 3-years.

Garden Reach Shipbuilders & Engineers Bags Order: It is worth noting that the company has entered into a contract with Indian Navy for supply of 10 in number 30 mm Naval Surface Gun (NSG) with Electro Optical Fire Control System (EOFCS) and ammunition at a cost of Rs 248.51 crore, according to its BSE filing.