Garden Reach Shipbuilders shares extend Wednesday’s 20% surge after new MoU

Shares of Garden Reach Shipbuilders & Engineers Ltd., the PSU defence company, have opened another 3% higher on Thursday, March 20, after the company has signed a new Memorandum of Understanding (MoU). This is after the stock had gained 20% on Wednesday.Garden Reach on Thursday, announced that it has signed a MoU with PWD Nagaland for the supply of eight sets of Double Lane Modular Steel bridges in the state.
This the first ever MoU between Garden Reach and a North-Eastern state. The value of this transaction has not been specified by the company.
Earlier, Garden Reach has delivered modular bridges to the Border Roads Organisation (BRO) and the National Highway Infrastructure Development Corporation Ltd. (NHIDCL), along with several state governments and countries like Bhutan, Nepal, Myanmar, Sri Lanka and Bangladesh.The company has supplied over 5,800 modular bridges so far.

Garden Reach Shipbuilders recently completed Contractor Sea Trials of two warships simultaneously namely the Himgiri and Androth, both of which are to be supplied to the Indian Navy.

Shipbuilder stocks like Mazagon Dock and Cochin Shipyard were also surging on Wednesday after Fincantieri CEO Pierroberto Folgiero recently emphasized India’s emergence as a global shipbuilding hub. Fincantieri is one of the world’s largest shipbuilding companies.

Shares of Garden Reach Shipbuilders are trading 4.2% higher on Thursday at ₹1,710. With the move seen over the last two sessions, the stock has narrowed its losses from its all-time high level down to 40%.