GRSE enters into 2 non-binding 'confidential' pacts; stock hits 5% upper circuit level

Garden Reach Shipbuilders & Engineers (GRSE) Ltd on Monday announced it entered into two non-binding memorandum of understandings (MoUs), which are confidential in nature. The Kolkata-based defence firm said it has collaborated with "Merlinhawk Aerospace Pvt Ltd for collaboration towards development of composite doors and hatches for use in Naval Ships, counter UAV solution using EDFCS along with CRN 91, EOIRST for surveillance, composite masts for Indian Navy ships and hydrogen fuel cells based power generation for maritime applications."

In addition, it has joined hands with "Kerala State Electronics Development Corporation Ltd (KELTRON) for establishing collaborative working arrangement towards development of core futuristic technologies in various fields to achieve self-reliance in certain areas of underwater surveillance."

The financial impact of the aforesaid MoUs has not yet been ascertained, it mentioned.

On the stock-specific front, GRSE shares jumped 5 per cent to hit their upper price band of Rs 2,581.50. At this price, the multibagger stock has gained 194.01 per cent on a year-to-date (YTD) basis.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.26. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 78.83 against a price-to-book (P/B) value of 16.83. Earnings per share (EPS) stood at 31.19 with a return on equity of (RoE) 21.35.

The scrip saw high trading volume on BSE today as around 2.09 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 2.01 lakh shares. Turnover on the counter came at Rs 52.58 crore, commanding a market capitalisation (m-cap) of Rs 29,482.25 crore.

As of June 2024, promoters held a 74.50 per cent in the defence firm.