Multibagger defence stock is down 38% from record high; price targets, technicals and more 

GRSE share price today: Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) are down 37.65% from their record high reached in July this year. GRSE stock, which touched a record high of Rs 2,834.60 on July 5, 2024 was trading at Rs 1,767.25 in the current session. The multibagger stock rose over 6.27% to Rs 1812 in the current session against the previous close of Rs 1704.95 on BSE. Market cap of the firm climbed to Rs 20,206 crore. On BSE, around 1.11 lakh shares changed hands amounting to a turnover of Rs 19.88 crore. 

The multibagger defence stock has climbed 110% in a year and risen 242.53% in two years. Garden Reach Shipbuilders stock has a one-year beta of 1.5, indicating high volatility during the period. Shares of Garden Reach Shipbuilders fell to their 52-week low of Rs 674.25 on October 26, 2023. 

In terms of technicals, the relative strength index (RSI) of Garden Reach Shipbuilders stood at 60.8, signaling it's trading neither in the overbought nor in the oversold zone. 

Shiju Koothupalakkal, Senior Manager - Technical Research Analyst, Prabhudas Lilladher said, "The stock after witnessing a decent erosion from Rs 2830 zone has bottomed out at Rs 1370 levels, thereafter indicating a significant pullback to improve the bias and sentiment. The stock has moved past the important 200 period moving average at Rs 1480 level and also the 50EMA at Rs 1610 level to establish conviction and has scope for further upside move. After a short span of consolidation recently, the stock has picked up but would need to decisively breach above the resistance zone of Rs 1860 level to confirm a breakout and thereafter expect for further rise with the next higher targets visible at Rs 1970 and Rs 2180 levels. one can maintain the stop loss of Rs 1620 (50EMA), which needs to sustain from current rate and can expect for further gains."

Brokerage Anand Rathi said the stock can be bought in a range of Rs 1,700 to Rs 1780. It expects the brokerage to reach the target of Rs 2,425-2,650. 

"Between the month, March 2024 to July 2024, GRSE surged over 300 points from the low of 700. After that, since many months, most of the shipping-related stocks have been trading in a corrective mode. The stock has eroded around 38% 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," said Jigar S Patel, manager at Anand Rathi. 

ICICI Securities has a sell call on the GRSE stock.

AR Ramachandran, an independendent Sebi registered analyst said, "GRSE stock price is bearish on the daily charts with strong resistance at Rs 1,805. A daily close below support of Rs 1,705 could lead to a fall till Rs 1,438 in the near term."

Prabhudas Lilladher Capital has a price target of Rs 2,770 for the defence stock. 

"The stock has witnessed a decent erosion from the peak zone of 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 2,770 keeping stop loss of Rs 1420," said the brokerage.

Garden Reach Shipbuilders & Engineers is mainly engaged in the construction of warships.