Here's why this Miniratna shipbuilding stock jumped 5% in trade on March 25

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Shares of state-owned shipbuilding company Garden Reach Shipbuilders and Engineers climbed 5.01 per cent to an intra-day high of ₹1,790 per share on the National Stock Exchange (NSE) during intra-day deals on Tuesday, March 25, 2025.

 

The rally in the Miniratna stock was fueled by the news that it had signed a contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co KG, Germany, for the construction of Multi-purpose vessels (MPV) in Germany.

 

"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," the company said in a release.

 

This contract is in line with the ‘Option Agreement’ signed between both parties for the procurement of four additional MPVs from GRSE.

 

The shipyard will build a total of eight vessels (08) at an approximate order value of $108 million. Each MPV will be 120 meters long, 17 meters wide, with a maximum draft of 6.75 meters, and can carry 7,500 metric tonnes of cargo.

 

Garden Reach Shipbuilders & Engineers is a Defence Public Sector Undertaking, under the administrative control of the Ministry of Defence. The shipyard was conferred the status of a Miniratna Category I Company in 2006. The company has built over 790 platforms, including 110 warships for the Indian Navy, Indian Coast Guard, and friendly foreign countries to date. In addition to shipbuilding and ship repair, GRSE is also engaged in engine production and other engineering activities.

 

The shipbuilder has a market capitalisation of ₹19,665.14 crore on the NSE.

 

Garden Reach Shipbuilders' shares have yielded a return of nearly 30 per cent in the last one month, while they have advanced nearly 4 per cent year-to-date. In contrast, the benchmark Nifty50 declined 0.27 per cent year-to-date.

 

The company's shares have a 52-week range of ₹2,833.80-₹762.15 on the NSE.

 

The Miniratna stock continued to trade northward during the day. At around 1:09 PM on Tuesday, Garden Reach Shipbuilders were quoted at ₹1,722.30 apiece, up 1.04 per cent from its previous close of ₹1,704.55 apiece on the NSE.

 

At the same time, the benchmark domestic indices were trading with marginal gains. The 30-share Sensex was up by 42 points or 0.05 per cent at 78,027 levels, and the Nifty50 was at 23,694 levels, up 36 points or 0.15 per cent.