Thus far in this calendar year, investors have received multi-bagger returns on their investments in Garden Reach Shipbuilders & Engineers (GRSE) Ltd. shares. On Tuesday, the stock closed 4.47 per cent higher at Rs 1,774.30. As of today’s closing price, the year-to-date (YTD) gain is 102.97%. The defence PSU has corrected 37.41% from its record-high value of Rs 2,834.60, a level recorded on July 5, 2024, notwithstanding the previously indicated significant climb.
For the most part, a few experts said that GRSE’s long-term narrative is still intact. The past 24 months have seen the stock rise significantly. Since its lowest points, it has multiplied. From its previous peak levels, the GRSE saw a significant correction. Despite medium- and short-term challenges such as valuation issues, the company’s earnings visibility appears strong. For investors with extended time horizons, the stock remains appealing. Those in charge may keep keeping their posts. According to WealthMills Securities Director of Equity Strategy Kranthi Bathini, “One should think about accumulating it on dips for fresh buying.”
“GRSE is making good development in the shipbuilding industry. It has secured an order for $108 million for eight multifunctional boats. The majority of the order book, which is now valued at Rs 25,230 crore, would be fulfilled by FY26 and FY27, according to Bigul CEO Atul Parakh.
“The company’s revenue is expected to rise by 3% YoY to Rs 924.9 crore in the second quarter of FY25 (Q2 FY25). GRSE is in a great position to take a piece of this market since the government is heavily promoting domestic military technology, Parakh continued.
Technically, the counter may find support at a level of Rs 1,700, then Rs 1,670. In the short run, it has the potential to rise as high as Rs 2,055. Profit-taking was observed in the stock subsequent to its peak price of Rs 2,834. We advise buying GRSE with a target price of Rs 2,055 and keeping a stop loss around Rs 1,670 due to its excellent risk-to-reward ratio, according to Kushal Gandhi, a technical analyst at StoxBox.
“Rs 1,700 will be the support and Rs 1,875, the resistance.” A clear advance above the Rs 1,875 mark might lead to more gains up to Rs 1,950. In the near run, the anticipated trading range is between Rs 1,700 and Rs 1,950, according to Anand Rathi’s Senior Manager of Technical Research Analyst Jigar S. Patel. The Ministry of Defence has administrative supervision over this top-tier shipbuilding enterprise. The government-owned 74.50% of the company as of September 2024.
