Garden Reach Shipbuilders’ shares climbed 4% after winning a Rs 491 crore contract to construct an Acoustic Research Ship (ARS) for DRDO. This project underlines their technical prowess in marine engineering and reinforces their strategic importance in defence manufacturing.
At 11:20 AM, Garden Reach’s stock was up by 3% at Rs 1,596. This increase contributes to an 83% year-to-date rise, significantly outstripping the Nifty 50’s 13% gain. This continuous upward trend marks the company’s third consecutive session of share price gains.
Despite the recent gains, Garden Reach experienced some fluctuations, with shares showing a downturn from August to October. This period of volatility reflects the complex dynamics in the defence sector’s market performance.
On October 29, Garden Reach received a Letter of Intent from the Naval Physical and Oceanographic Laboratory (NPOL), a unit of the Ministry of Defence. The contract mandates comprehensive tasks including design, development, and delivery of the ARS within 36 months.
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The scope of the contract includes the integration of equipment, rigorous testing, and certification, ensuring that the ship meets all operational standards before its commissioning. This project emphasises Garden Reach’s capability to handle complex defence contracts efficiently.
Garden Reach has a long history of serving India’s maritime defence needs, specialising in constructing a range of warships such as frigates, corvettes, and patrol vessels for the Indian Navy and Coast Guard. They also offer repair services for defence and commercial vessels.
Founded in 1934 and public since 2017, Garden Reach operates under the Ministry of Defence, showcasing decades of commitment to India’s security through maritime strength. This long standing role underscores their pivotal position in national defence infrastructure.
