Shares of Garden Reach Shipbuilders stuck on their bull trend, firing up another 5% on June 5 to hit a record high of Rs 3,521.30 after the company signed yet another memorandum of understandings, this time with German and Dubai-based companies.
First, the company inked an MoU with Germany’s Carsten Rehder for the construction of four multi-purpose vessels. These vessels will be built as a continuation of the eight vessels currently under construction at GRSE’s Kolkata shipyard. The follow-on vessels will feature hybrid propulsion systems and comply with the latest cybersecurity standards. The firm contract for these vessels is expected to be finalized by 31 August 2025.
Secondly, the company signed another MoU with Dubai-based Aries Marine to venture into the construction of offshore platforms and vessels. This MOU aims to facilitate collaboration on identifying and developing offshore orders for platforms designed by ARIES and built by GRSE. Lastly, the company also signed a third MoU with a global engine manufacturer on the same day.
The latest wave of MoUs seems to have strengthened investor enthusiasm over GRSE’s growth prospects, which are seen ballooning amid geopolitical tensions. Since the onset of border tensions between India and Pakistan, the defence sector has jumped straight back into the center of investor interest, with GRSE being a key beneficiary.
The stock has notched around 19% gains in three straight sessions, also leading the upmove on the Nifty India Defence index. The stock has just swelled up nearly 80% in just the last one month, reflecting the widespread bullishness raining over the counter.
The company’s shipbuilding order book also looks strong, backed by several big-ticket deals. These include eight P-17 Bravo Frigates worth ₹70,000 crore, eight Next Generation Corvettes (₹40,000 crore, expected to be awarded in FY26), 18 Next Gen Fast Patrol Vessels (₹3,000 crore), five Next Gen Survey Vessels (₹3,500 crore), 31 Waterjet Fast Attack Craft (₹3,000 crore), and 12 Mine Countermeasure Vessels (₹32,000 crore). On top of that, there are several smaller projects in the ₹1,500–3,000 crore range, adding further muscle to the pipeline.
