GRSE Shares Surge on Order Win of Rs 840 Crore

Garden Reach Shipbuilders & Engineers Ltd. (GRSE), a premier warship building company under the Ministry of Defence, Government of India, recently signed a significant contract with the National Centre for Polar and Ocean Research (NCPOR). This contract marks another milestone in GRSE’s illustrious history, showcasing its expertise in constructing specialized vessels.

The Details of the Contract

The contract, valued at approximately ₹840 crore, is for the construction and delivery of an Ocean Research Vessel (ORV) for NCPOR, under the Ministry of Earth Sciences, Government of India. The ORV will be an advanced research ship equipped to conduct a variety of scientific operations, including:

Underway Swath Multibeam and Geophysical Seismic Surveys: This will facilitate detailed mapping and analysis of the ocean floor.

Conductivity, Temperature, and Depth Profiling: Essential for understanding oceanographic conditions and supporting biological sampling.

Surface and Deep-Sea Mooring and Data Buoy Operations: Critical for monitoring oceanographic data in real-time.

Seabed Sampling and Rock Dredging: These capabilities will aid in collecting geological and biological samples from the ocean floor.

Atmospheric Observations and Upper Air Data Collection: These functions will enhance meteorological and climatic research.

Strategic Significance

The ORV will have a length of 89.50 meters, a width of 18.80 meters, and a depth of 12.50 meters, with a gross tonnage of 5,900 tons. The vessel will be capable of operating at speeds up to 14 knots and at depths of up to 6,000 meters. The inclusion of advanced equipment for deploying and retrieving autonomous underwater vehicles (AUVs) and remotely operated vehicles (ROVs) positions this ORV at the forefront of marine research technology.

This contract reinforces GRSE’s commitment to supporting India’s scientific community and contributing to the ‘Aatmanirbhar Bharat’ initiative by developing high-tech, indigenous capabilities in shipbuilding. The company’s experience in building survey vessels for the Indian Navy and other international clients, such as the Marine Acoustic Research Vessel INS Sagardhwani and the INS Sandhayak, underpins its competence in handling such sophisticated projects.

Recent Stock Performance of GRSE

In addition to this significant contract win, GRSE’s stock has shown impressive performance in the market. On Tuesday, the stock is trading nearly 3% higher, with the bulk of the move occurring in the second half of the session. This spike can be attributed to investor confidence stemming from the new contract and GRSE’s solid track record. Notably, in 2024, the stock has jumped by an astounding 196%, reflecting the market’s positive sentiment and the company’s robust financial and operational performance.

Overall, GRSE continues to build on its legacy, driving forward with strategic projects that not only bolster its market standing but also contribute significantly to national and global maritime research capabilities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.