Garden Reach Shipbuilders shares extend gains, zoom 18% today; is more steam left?

Garden Reach Shipbuilders & Engineers Ltd shares on Tuesday extended their sharp upward run for the second consecutive session. The stock soared 17.89 per cent to hit a day high of Rs 2,065.25. The scrip was last seen trading 10.86 per cent higher at Rs 1,942.05 today. At this price, it has delivered multibagger returns by rallying 122.16 per cent on a year-to-date (YTD) basis.

The defence PSU has recently signed an commercial vessels agreement with Carsten Rehder Schiffsmakler and Reederei GmbH & Co for construction and delivery of four multi-purpose vessels of 7,500 DWT each, with an option of building another four ships in near future.

Analysts largely remained positive on the counter. Support could be seen at the Rs 1,920-1,900 zone. Immediate resistance may be found at Rs 2,100.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "GRSE has experienced significant gains in this calendar year. The stock is currently in overbought territory. So, caution is advised at these higher levels. It is recommended to capitalise on the momentum while practicing proper risk management and using trailing stop losses as long as the uptrend continues."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has potential to hit an upside target of Rs 2,150. Keep stop loss placed at Rs 1,920."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,900 and resistance at Rs 2,100."

Garden Reach Shipbuilders & Engineers is a warship building company, under the administrative control of the Ministry of Defence. As of March 2024, the government owned a 74.50 per cent in the state-run firm.