GRSE shares: Garden Reach Shipbuilders & Engineers Ltd (GRSE) shares continued their winning streak for the fifth consecutive session on Tuesday. The stock surged 14.84% to reach a lifetime high of Rs 1,869.45 and was last trading 10.25% higher at Rs 1,794.70. Over the past five trading days, the stock has gained 30.24%. Year-to-date, GRSE has delivered multi-bagger returns, rallying by 105.31%.
The stock experienced heavy trading volume on the BSE, with around 3.12 lakh shares changing hands, surpassing the two-week average volume of 2.18 lakh shares. The turnover amounted to Rs 55.56 crore, and the market capitalization (m-cap) stood at Rs 20,536.31 crore.
Defense stocks are generally on the rise after Union Minister Rajnath Singh announced the country’s goal to double military exports to Rs 50,000 crore within the next five years.
Earlier this month, the company emerged as the lowest bidder for the construction of a research vessel for the Defence Research and Development Organisation (DRDO), with an order value of approximately Rs 500 crore.
Additionally, Garden Reach Shipbuilders & Engineers (GRSE) signed a contract with the Bangladesh Inland Water Transport Authority (BIWTA) for the procurement of a trailing suction hopper dredger with a capacity of 1000 m³ and spare parts. The contract is worth $1,65,75,210 in total.
Technical analysts remain largely positive on the stock. Support is anticipated at the Rs 1,700 level, while a decisive close above Rs 1,867 is required for further upside.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, commented, “GRSE has surged in the current financial year, reaching record highs. Recently, the stock broke out from the Rs 1,420-1,400 range, which should now act as a strong support during any upcoming dips or profit booking. The trend remains buoyant, and the stock is poised to continue its upward movement.”
However, he cautioned against complacency and advised maintaining a pragmatic approach, using dips to accumulate shares from a short- to medium-term perspective.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, noted, “The stock appears strong on daily charts and could reach an upside target of Rs 1,950 in the near term. A stop loss should be placed at Rs 1,720.”
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Technical Research at Anand Rathi-Jigar S Patel, Senior Manager Stocks and Shares Brokers, commented that support is at Rs 1,700 and resistance at Rs 1,867. A decisive close above Rs 1,867 could lead to an upside towards Rs 1,950. The expected trading range for the month is between Rs 1,600 and Rs 2,000.
As of March 2024, promoters held a 74.50 percent stake in the aerospace and defense firm.
