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Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped 10 per cent on Wednesday after the defence PSU signed a strategic agreement with Norway’s Kongsberg for indigenous construction of India’s first Polar Research Vessel (PRV).
This has driven the stock to new lifetime highs making it one of the supreme leaders in the defence and PSU segment.
GRSE stock jumps 6% to lifetime high
The shares of GRSE shot up by 6.19 per cent to finish at Rs 3,149 on the BSE, with intraday highs of Rs 3,188.75, the highest ever seen for the stock. The company now has a market capitalisation of Rs 36,082 crore.
Trading was also vigorous with more than 7.94 lakh shares changing hands, resulting in a total turnover of Rs 246.62 crore, indicating strong institutional and retail interest.
95% gains in 1 year; stock zooms 797% in 3 years
GRSE has demonstrated a predictable wealth generator with a delivered return of 95 per cent in just the last year. Over a longer, three-year period GRSE has rallied an astounding 797 per cent benefit in defence capex, PSU re-rating and indigenous manufacturing - all enshrined in the government’s Make in India credentials.
Such a sharp multiyear rally makes GRSE one of the highest-performing defence PSUs in recent years.
Technical indicators
Technically, GRSE seems to be overbought, with the Relative Strength Index (RSI) at 79, well above the 70 level of overbought territory. This indicates a strong momentum but drives caution in terms of potential near-term consolidation or profit booking.
Nonetheless, the breakout above new highs as well as the persistent increase in volumes indicate the underlying view continues to be bullish.
Polar Research Vessel deal
The highlight for the stock’s latest surge was the MoU with Kongsberg, which opens the gateway for India to build its first Polar Research Vessel domestically. GRSE will leverage Kongsberg’s design expertise to construct the PRV at its Kolkata shipyard, further strengthening its portfolio beyond warships into research and exploration domains.
This aligns with India’s ambitions to expand polar exploration and underscores GRSE’s capabilities in handling complex marine projects.
Market Outlook
With its stock reaching all-time highs and multibagger returns, GRSE is still a serious player in body building for defence. The company moving into advanced vessels such as PRVs will open up new channels of revenue.
That said, analysts continue to suggest looking at the RSI and volume trend on this stock to determine entry levels, even if long-term the trend still appears strong given some strategic deals and government support in defence!
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