GRSE shares surge 20% after posting doubling Q4 profit but ICICI Securities screams sell
Shares of PSU defense company Garden Reach Shipbuilders (GRSE) experienced a significant surge of 20% on the BSE on Thursday, reaching a new all-time high of Rs 1,424.80. This surge followed the company's announcement of a remarkable 104% year-on-year (YoY) increase in its net profit to Rs 112 crore.
of PSU defence company () surged 20% on BSE on Thursday to a new all-time high of Rs 1,424.80 after the company posted a 104% year-on-year (YoY) increase in its net to Rs Rs 112 crore. However, domestic brokerage firm recommends a ‘sell’ call with a target price of Rs 515 for the stock.The shipbuilder stated that it achieved its best-ever financial in FY24 with its total income for FY24 at Rs. 3,892 crore and EBITDA stood at Rs 166 crore in FY24 against Rs 90 crore of the previous year registering a of 84%. The from operations grew 69% YoY to Rs 1,016 crore in Q4FY24.
“Happy to report a strong set of numbers, with both our Revenue from Operations and Profit after Tax reaching new heights. Backed by a strong order book and with our ongoing projects at a maximum revenue recognition phase, and also with more on the anvil, we are confident of sustained growth in the coming years too. Our focus continues to be on timely execution of ongoing projects and new technology adoption with specific impetus on development of autonomous and green energy platforms,” said Hari PR, Chairman & MD of GRSE.
ICICI Securities viewed the results positively and mentioned that the company has a lot of potential for growth in terms of orders, however, they remained skeptical about the the timing and delivery of the orders as they have observed past delays in GRSE’s recent orders.
“We believe that GRSE has significant growth prospects with potential orders for NGC and P-17B frigates in the near future. However, the timing and extent of involvement of GRSE in these contracts remains critical. We have witnessed delays in some of the recent ordering,” said a report by ICICI Securities.
While management is focusing on several growth vectors at the moment like exports, commercial shipbuilding and other equipment such as naval guns, we believe that such initiatives are still nascent, added Amit Dixit of ICICI Securities.
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Source: Stocks-Markets-Economic Times
