Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) have delivered multibagger returns of 677% in three years. The defence stock, which closed at Rs 224.25 on October 21, 2021 was trading at Rs 1,721 in early deals today. In comparison, Sensex gained 33.68% during the period.
However, Garden Reach stock was in a correction mode in the current trading session. Garden Reach Shipbuilders stock slipped 7% to Rs 1675.55 today against the previous close of Rs 1804.20 on BSE. Market cap of the firm fell to Rs 19,236 crore.
On BSE, around 0.73 lakh shares changed hands amounting to a turnover of Rs 12.57 crore.
The multibagger defence stock has climbed 122% in a year and risen 280% in two years. Garden Reach Shipbuilders stock has a one-year beta of 1.3, indicating high volatility during the period.
Shares of Garden Reach Shipbuilders fell to their 52-week low of Rs 648.05 on October 26, 2023.
In terms of technicals, the relative strength index (RSI) of Garden Reach Shipbuilders stood at 54.6, signaling it's trading neither in the overbought nor in the oversold zone.
Brokerage Anand Rathi has price targets of Rs 2425 and 2650 for a year. Stop loss can be fixed at Rs 1300.
In its technical analysis report, the brokerage said, "Between the month March 2024 to July 2024, GRSE surged over 300 points from the low of Rs 700. After that, since many months, most of the shipping related stocks have been trading in a corrective mode. If we talk about GRSE, then the stock has eroded around 45% of its price from the top. At this juncture, we are witnessing that the stock is turning from its 200 DEMA and 61.8% retracement level. In addition, the stock is about to confirm a change of trend by making higher top and higher bottom formation. Investors / Traders can accumulate the stock with a time frame of around 1 year."
Another brokerage Prabhudas Lilladher Capital has given a price target of Rs 2770, mentioning that stop loss can be fixed at Rs 1420.
"The stock has witnessed a decent erosion from the peak zone of Rs 2833 and recently has found consolidation near the Rs 1700 zone with stability maintained. With recent low made near Rs 1510 level, it has indicated a pullback with currently having a positive candle formation with significant volume participation to improve the bias and anticipating for further rise in the coming days. The RSI has indicated a positive trend reversal from the highly oversold zone to signal a buy and has much upside potential to carry on with the positive move further ahead. With the chart technically looking very attractive, we suggest to buy the stock for an upside positional target of Rs 2770, " said Prabhudas Lilladher.
Garden Reach Shipbuilders & Engineers is mainly engaged in the construction of warships.