Garden Reach Shipbuilders Share Price Soars Above 9% on Long-Term Lease Agreement with Kolkata Port

On Monday, April 28, 2025, Garden Reach Shipbuilders & Engineers Ltd saw a significant rise in its share price. The stock opened at ₹1,626.55 on the BSE, which was just slightly higher than the previous day’s closing price of ₹1,616.80. However, the share price quickly gained momentum, climbing to an intraday high of ₹1,763, reflecting a gain of more than 9% during the morning trades. This marked a notable surge in the company’s stock price, which has risen over 15% since the start of April 2025.

Details of the Long-Term Lease Agreement

The boost in Garden Reach Shipbuilders’ share price comes after the company announced a long-term lease agreement with Syama Prasad Mookerjee Port, Kolkata (SMPK). The lease was finalised for a period of 30 years, with no renewal option. This agreement was disclosed after market hours on Friday, April 25, 2025.

The leased land, located at Timber Pond, Howrah in West Bengal, offers valuable waterfront access. The company stated that this step is in line with its long-term strategy to strengthen its infrastructure to cater to the growing demand in both the domestic and export markets. The addition of the leased land is expected to support the company’s initiatives in shipbuilding, ship repair, and other engineering activities.

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Potential Revenue Impact

Although Garden Reach Shipbuilders has not specified the expected revenue from this lease, the move is anticipated to contribute positively to the company’s revenue generation. It is expected that the leased land will support the company in ensuring sustained revenue growth, which in turn could lead to increased earnings prospects.

The company’s strategic move to expand its infrastructure and operations, particularly in the shipbuilding and maritime sectors, will likely improve its competitive position and provide additional resources to meet the demands of a growing market.

About Garden Reach Shipbuilders & Engineers Ltd

Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a prominent defence shipyard based in Kolkata, India. The company specialises in the construction and repair of both commercial and naval vessels, and it also exports the ships it manufactures.

Garden Reach Shipbuilders & Engineers share price (GRSE) is currently trading at ₹1,742.80, showing an increase of ₹126.00 (7.79%) as of 12:06 PM IST on April 28. The stock opened at ₹1,631.00, reached a high of ₹1,767.40, and a low of ₹1,622.40 during the day. The market capitalisation stands at ₹19.96K crore, with a P/E ratio of 50.58 and a dividend yield of 0.60%. Over the past 52 weeks, the stock has seen a high of ₹2,833.80 and a low of ₹881.00.

Conclusion

The long-term lease agreement is a strategic move by Garden Reach Shipbuilders to enhance its infrastructure and cater to increasing market demand. This development is expected to support the company’s growth in shipbuilding and related sectors, providing strong potential for sustained revenue and earnings growth. The positive market response reflects investor confidence in the company’s future prospects.

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