Multibagger defence PSU declares highest-ever dividend, stock down 47% from record-high; Should you buy or sell? | Stock Market News

Garden Reach Shipbuilders & Engineers share price today: Garden Reach Shipbuilders announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Monday, February 3, and reported a rise of 11.2 per cent in consolidated net profit to ₹98.2, compared to ₹88.3 crore in the corresponding period last year. Also, the leading defence public sector undertaking (PSU) declared its highest dividend of ₹8.95/share for FY25.

India’s leading defence shipyard’s revenue from operations in the third quarter of the current fiscal rose 37.7 per cent to ₹1,271 crore, compared to ₹924 crore in the year-ago period. Earnings per share (EPS) for the December quarter was ₹8.57 compared to ₹7.70 in the year-earlier period.

Also Read: Defence Stock Apollo Micro Systems gains 10% on signing MOU with Garden Reach Shipbuilders

Garden Reach Shipbuilders Share Price Trend

On Monday, shares of Garden Reach Shipbuilders opened at ₹1,570 and dropped over six per cent to hit an intraday low of ₹1,474.30 before settling 5.31 per cent lower to ₹1,508.45 apiece on the BSE. As of February 3, the Kolkata-based PSU commands a market cap of ₹17,279.60 crore. The stock is currently 47 per cent down from its record 52-week high of ₹2,834.60.

According to Trendlyne data, Garden Reach Shipbuilders has delivered multi-bagger 533 per cent returns to investors in the last five years. The stock is up nearly 70 per cent in the last one year. The PSU builds, exports, and repairs commercial and naval vessels. As of March 2024, it has built 108 warships and patrol vessels for the Indian Navy and the Coast Guard for the last 63 years.

Also Read: Defence PSU stocks regain mojo, surge up to 25% in 5 sessions; Bharat Dynamics, Garden Reach among top gainers

Garden Reach Shipbuilders Dividend

The PSU has also declared an interim dividend of ₹8.95 per share, which is the highest on record for the company. This has surpassed the ₹7.92 per share the company had declared in February last year. The record date for this dividend payout has been fixed as Friday, February 7, 2025.

“We wish to inform you that the Board of Directors, at their meeting held on Monday, February 3, has declared an interim dividend for the financial year 2024-25 @ ₹8.95 per equity share of the face value of ₹10 each, amounting to ₹102.52 crore, out of profits of the company for the nine months period ended December 31, 2024,” said Garden Reach Shipbuilders.

“Further, the Board of Directors has fixed Friday, February 7, 2025, as the Record Date for determining the shareholders entitled to receive the Interim Dividend for FY 2024-25,” added the defence PSU in a regulatory filing to the stock exchanges.

Also Read: Garden Reach Shipbuilders share price jumps 6% on ₹491 crore contract from Defence Ministry

Garden Reach Shipbuilders Q3 Results

Garden Reach Shipbuilder’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹147 crore in the quarter under review compared to ₹130 crore in the corresponding period a year ago. The total income for Q3FY25 stood at ₹1,343 crore compared to Rs. 1,005 crore in Q3FY24, with a growth of 34 per cent.

“This reflects the company’s continued focus on operational efficiency and delivering value to our stakeholders. Our order book remains robust, and ongoing projects are progressing smoothly. We anticipate securing more orders in the coming months, further strengthening our order book position. The future looks bright,” said Cmde PR Hari, IN (Retd), Chairman and Managing Director of Garden Reach Shipbuilders.

Garden Reach Shipbuilders: Should you buy, sell or hold the stock?

According to the brokerage Antique Stock Broking, the next-generation corvettes might further aid Garden Reach Shipbuilders in ordering books. Antique likes Garden Reach’s growth prospects and maintained Buy ratings with a target price of ₹2,092, indicating about 12 per cent upside.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.