Garden Reach Shipbuilders shares hit record high in early deals, here’s why

Shares of Garden Reach Shipbuilders & Engineers Ltd rose nearly 10% in early deals today after the defence firm said it has inked a contract for construction of advance ocean-going tug for Directorate General Defence contract (s) Purchase, Ministry of Defence, Government of the People's Republic of Bangladesh. The value of the order is approx. $21 million or Rs 170 crore.

“The overall length (LOA) of the tug will be nearly 61 metres, and the vessel will be about 15.80 metres wide with a depth nearly 6.80 metres. The tug's draught requirement with a full load will be around 4.80 metres while it's bollard pull capacity will be 76 Tons ahead and 50 Tons astern. The ship's maximum speed with a full load will be at least 13 knots," said the PSU firm.

Garden Reach stock gained 9.97% to a record high of Rs 2309 in early deals on BSE. Garden Reach shares saw a high turnover of Rs 112.19 crore as 4.97 lakh shares changed hands on BSE today. Garden Reach stock fell to a 52 week low of Rs 558.60 on July 4, 2023.

It has a beta of 1.1%, indicating high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 74.7, signaling it's trading in the overbought zone.

Garden Reach shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day and 100 day moving averages.

Garden Reach Shipbuilders & Engineers is a warship building company. The company is under the administrative control of the Ministry of Defense, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.