In the early trading hours of Wednesday's session, both the Sensex and Nifty indices started with losses, experiencing a dip of 0.21% and 0.31% respectively. Amid a prevailing atmosphere of market uncertainty, there is a current period of heightened volatility, exemplified by a significant 3.67% surge in the India VIX.
Amidst these shifting market sentiments, shares of Garden Reach Shipbuilders & Engineers Limited saw a remarkable surge of 17.26%. Notably, the stock achieved a fresh 52-week high at Rs 787.55 per share on the BSE platform. Moreover, trading volume for the scrip increased by more than 5.30 times, reflecting robust investor interest and substantial buying activity. This impressive upswing can be attributed primarily to the company's outstanding performance in Q1.
Q1 FY2024 - Quarter-on-Quarter (QoQ) Analysis
Garden Reach Shipbuilders & Engineers Limited exhibited a noteworthy 25.79% growth in revenue, reaching Rs 756 crore in Q1 FY2024, up from Rs 601 crore in Q4 FY2023. The period also witnessed a remarkable surge in EBITDA, recording a substantial 130% increase to Rs 46 crore compared to Q4 FY2023. Furthermore, the Profit After Tax (PAT) demonstrated a substantial increase of 34.21%, amounting to Rs 102 crore. These impressive figures underscore the company's positive momentum and its promising growth trajectory.
Q1 FY2024 - Year-on-Year (YoY) Comparison
In the first quarter of FY2024, the company's revenue exhibited an impressive YoY growth of 30.34%, ascending to Rs 756 crore from Rs 121.1 crore in Q1 FY2023. Simultaneously, the operating profit experienced a substantial rise of 39.39%, totaling Rs 46 crore. The net profit showcased remarkable expansion, surging by an impressive 59.37% to Rs 102 crore.
Breaking down the revenue sources, the Shipbuilding segment emerged as the largest contributor, accounting for a substantial 89.39% of the revenue. Following suit, the Bailey Bridge segment contributed 3.42%, while the Diesel Engine segment held a 3.18% share. This strategic allocation of resources across diverse sectors emphasizes the company's well-balanced and dynamic growth approach.
Taking a broader perspective on the shareholding pattern, it is noteworthy that the President of India holds a significant stake of 74.50%. This aligns with the evolving 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, a premier shipbuilding enterprise under the Ministry of Defence, holds a distinguished position as India's leading shipbuilding firm, catering to the esteemed needs of the Indian Navy and Coast Guard.
Remarkable market interest is evident as the stock has surged by an impressive 306% over the past two years.
Stay vigilant and attentive to the current momentum of this emerging stock.
Disclaimer: The content presented is intended for informational purposes exclusively and should not be construed as investment counsel.
