1159% return in 3 years: Shares of Kolkata-based defence firm hit upper circuit after signing MoU - Do you own?

Multibagger Shipping Stock: Shares of Kolkata-based defence Garden Reach Shipbuilders and Engineers (GRSE) Ltd hit 5 per cent upper circuit on Monday after the company with Merlinhawk Aerospace said that it has signed an MoU with Bengaluru-based Merlinhawk Aerospace Pvt Ltd for developing a counter-Unmanned Aerial Vehicle (UAV) solution.

The counter opened in red at Rs 2420.10 but surged 5 per cent to hit the high of 2581.50 on the BSE. It held firmly in gain and ended the session with a gain of 4.68 per cent at Rs 2573.75.

As per the BSE analytics, the counter has given a multibagger return of 1159 per cent in three years and 329 per cent in on year. The counter has already gained 194 per cent so far this year.

The surge in share price comes as the company shared detailed about the MoU. As per the MoU, the company will develop a counter-Unmanned Aerial Vehicle (UAV) solution using Electro-Optical Fire Control System (EOFCS) with Close Range Naval 91-gun and an Electro-Optical Infra-Red Search and Track (EOIRST) System.

The two companies will also collaborate in the development of Composite doors and hatches for use on naval ships, Composite Masts for Indian Navy ships and Hydrogen fuel cells-based power generation for maritime applications.

An official said that the progress of the collaborative effort will be evaluated after six months.

“Any product developed will be tested and showcased to potential customers at locations designated by GRSE. Both parties will make joint efforts to market the products,” he said.

He said that in case of any order, a separate agreement will be drawn out to execute the same.

“While GRSE holds the record of having delivered the largest number (109) of warships to India's maritime defence forces and exported warships to several nations, Merlinhawk provides design and manufacturing support for the development of indigenous electronic and electrical components and systems for the armed forces,” the official said.

He said that this collaboration is a major boost for the country's Aatmanirbhar Bharat and 'Make in India' initiatives.

“GRSE has been trying to leverage the technological know-how of Indian companies in the private sector to develop indigenous solutions,” the official said.

He said that GRSE has recently launched the second edition of the GRSE Accelerated Innovation Nurturing Scheme or GAINS - an open challenge for Start-Ups and MSMEs to develop advanced solutions that would bring about greater efficiency in shipbuilding.

He said that while warship building continues to remain GRSE's mainstay, the company is also a pioneer in the field of portable steel bridges. “GRSE has also diversified into fields such as ship repairs and refits and the manufacture of 30 mm Naval Surface Guns (NSGs),” the officials said.

He said that while there is heavy demand for its repair and refit facility, the Indian Navy has already placed an order for 10 NSGs. “The shipyard has also begun designing and building specialised vessels both for the domestic and international markets,” the official said.

With IANS inputs