Shares of Garden Reach Shipbuilders & Engineers (GRSE) Ltd have delivered multibagger returns to investors in this calendar year so far. The stock settled 4.47 per cent higher at Rs 1,774.30 on Tuesday. At this closing price, it has rallied 102.97 per cent on a year-to-date (YTD) basis. Despite the mentioned sharp rise, the defence PSU has corrected 37.41 per cent from its record-high value of Rs 2,834.60, a level seen on July 5, 2024.
A few analysts largely suggested that the long-term story remains intact for GRSE. “The stock has been a multibagger in the last 24 months. It has multiplied from its bottom levels. GRSE witnessed a sharp correction from its peak levels in the recent past. The company’s earnings visibility looks robust despite the medium- and short-term headwinds like valuation concerns. The stock is still attractive for long-term investors. Those holding can continue with their positions. For fresh buying, one should consider accumulating it on dips,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
“GRSE is progressing well in the shipbuilding space. It has won an order for eight multipurpose vessels at a price tag of $108 million. The order book, which currently stands at Rs 25,230 crore, is such that most of it will be completed by FY26 and FY27,” said Atul Parakh, CEO at Bigul.
“The company’s second-quarter (Q2 FY25) numbers are likely to see a 3 per cent year-on-year (YoY) increase in revenue to Rs 924.9 crore. Given that the government is pushing very hard on home-grown defence tech, GRSE finds itself in an excellent position to grab a slice of this pie,” Parakh added.
Technically, support on the counter could be seen at Rs 1,700, followed by Rs 1,670 level. On the higher end, it can climb up to Rs 2,055 in the near term.
“The stock experienced profit-taking after reaching a high of Rs 2,834. With a favourable risk-to-reward ratio, we recommend purchasing GRSE with a target price of Rs 2,055 and maintaining a stop loss at Rs 1,670,” said Kushal Gandhi, Technical Analyst at StoxBox.
“Support will be Rs 1,700 and resistance Rs 1,875. A decisive move above Rs 1,875 level may trigger a further upside towards Rs 1,950. The expected trading range will be between Rs 1,700 and Rs 1,950 for the short term,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi.
The company is a premier warship-building company, under the administrative control of the Ministry of Defence. As of September 2024, the government held a 74.50 per cent stake in the firm.
