This PSU is trending on October 10

The share surged 14.21% on the day

On October 10, the market is trading in the red. At 1:45 pm, the S&P BSE Sensex is trading at 57921, down 0.46%, while NIFTY50 is trading at 17196.1, down 0.68%. Among sectors, Commodities and IT are outperforming, while FMCG is underperforming today. Regarding stock-specific action, Garden Reach Shipbuilders & Engineers Ltd is among the top gainers.  

The share surged 14.21% and is trading at Rs 448.05. The stock opened at Rs 386.1 and has made an intraday high and low of Rs 449.95 and Rs 383.4, respectively. 

Garden Reach Shipbuilders & Engineers Ltd is India’s premier shipbuilding company that is administered by the Ministry of Defence. It primarily serves the shipbuilding needs of the Indian Navy and the Indian Coast Guard. The company has eight units, of which seven are located around the Kolkata region, while one is in Ranchi, Jharkhand. It operated into three segments- shipbuilding and ship repairing, engine assembling and testing, and engineering products.

For FY22, the company reported a net sale of Rs 1758 crore and a net profit of Rs 190 crore. For the June quarter, revenue stood at Rs 580 crore, a YoY jump of 90%. While Q1FY23 net profit was recorded at Rs 50 crore. 

As per FY22, the company has ROE and ROCE of 15.1% and 20.5%, respectively. While the dividend yield stands at 1.39%.  

The company has strong revenue visibility with an order book of Rs 23573 crore, as of June 2022, which is expected to be completed within the next 5-6 years. About 99% of these orders are from the Indian Navy. 

About the shareholding pattern, 74.5% of the stake is owned by the promoters, 1.76% by FIIs, 9.16% by DIIs, and the rest 14.58% by non-institutional investors.  

The company has a market capitalization of Rs 5118 crore and is trading at a PE multiple of 21.9x. The stock has a 52-week high and low of Rs 430 and Rs 199, respectively.