Garden Reach Shipbuilders & Engineers Records Strong Growth in Net Sales and Profit for Q1 FY25

Garden Reach Shipbuilders & Engineers, a leading shipbuilding company in India, has recently announced its financial results for the quarter ended June 2024. The company has shown a positive performance in terms of net sales and profit after tax (PAT) for the first half of the year.

According to the financial report, Garden Reach Sh. has recorded a growth of 49.25% in net sales, reaching Rs 2,025.45 crore compared to the same period last year. This indicates a strong sales trend for the company in the near future. Similarly, the PAT has also shown a growth of 50.62%, reaching Rs 198.79 crore, which is a positive sign for the company’s profitability.

However, there are some areas that need improvement for Garden Reach Sh. The profit before tax (PBT) for the quarter has fallen by -8.3% compared to the average PBT of the previous four quarters. This indicates a negative trend in the near term for PBT. Additionally, the company’s non-operating income is 63.99% of the PBT, which is a concern as it shows a high reliance on non-business activities.

Despite these challenges, MarketsMOJO has given a ‘Buy’ call for Garden Reach Sh. based on its positive financial performance. The company’s growth in net sales and PAT is a testament to its strong position in the shipbuilding industry. With a large market cap, Garden Reach Sh. is a key player in the industry and is expected to continue its growth trajectory in the coming years. Investors can consider adding this stock to their portfolio for potential long-term gains.