Sell Garden Reach Shipbuilders & Engineers, target price Rs 390: ICICI Securities

ICICI Securities has sell call on Garden Reach Shipbuilders & Engineers with a target price of Rs 390. The current market price of Garden Reach Shipbuilders & Engineers is Rs 491.95.

Garden Reach Shipbuilders & Engineers, incorporated in the year 1934, is a Small Cap company (having a market cap of Rs 5621.64 Crore) operating in Shipping sector.

Garden Reach Shipbuilders & Engineers key Products/Revenue Segments include Contract Revenue, Sale of Products, Sale of services, Scrap, Miscellaneous Income and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 722.84 Crore, up 16.47 % from last quarter Total Income of Rs 620.62 Crore and up 57.81 % from last year same quarter Total Income of Rs 458.04 Crore. Company has reported net profit after tax of Rs 58.73 Crore in latest quarter.

The company’s top management includes CommodoreP R Hari, Mr.Ramesh Kumar Dash, Mr.Shantanu Bose, Mr.Sanjeeb Mohanty, Mr.Sanjay Dattatraya Panse, Mr.Rajeev Prakash. Company has Mookherjee, Biswas & Pathak as its auditors. As on 31-12-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale
Shipbuilders might be adversely affected from lower spend budgeted for naval fleet.

Promoter/FII Holdings
Promoters held 74.5 per cent stake in the company as of 31-Dec-2022, while FIIs owned 2.52 per cent, DIIs 7.55 per cent.