Multibagger defence stock climbs 6% in early deals, here's why 

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) rose over 6% in early deals on Thursday after the defence sector firm said it has inked a MoU with PWD (Roads & Bridges), Nagaland for supply of 8 sets of double lane modular steel bridges in Nagaland.

The multibagger stock rose 6.39% to Rs 1746.10 on Thursday against the previous close of Rs 1641.15 on BSE. Market cap of the firm stood at Rs 19,421 crore. On BSE, around 1.31 lakh shares changed hands amounting to a turnover of Rs 22.40 crore.

The defence stock has climbed 125% in a year and risen 303% in two years. Garden Reach Shipbuilders stock has a one-year beta of 1.8, indicating very high volatility during the period.

"Garden Reach Shipbuilders & Engineers Ltd. (GRSE) achieved a significant milestone by signing a breakthrough Memorandum of Understanding (MoU) with PWD Nagaland for the supply of eight sets of Double Lane Modular Steel Bridges in the state. This landmark MoU marks the first ever MoU between GRSE and a North Eastern State, aligning with the Government of India’s Make in India initiative for accelerated regional development," said Garden Reach in a communication to bourses.

"In the past, GRSE has delivered Modular Bridges to the Border Roads Organisation (BRO) and the National Highway Infrastructure Development Corporation Ltd (NHIDCL), apart from several state governments and friendly countries like Bhutan, Nepal, Myanmar, Sri Lanka and Bangladesh. Till date, GRSE has supplied over 5,800 Modular Bridges, " added GRSE.

Shares of Garden Reach Shipbuilders fell to their 52-week low of Rs 744 on March 20, 2024 and hit a 52 week high of Rs 2834.60 on July 5, 2024.

In terms of technicals, the relative strength index (RSI) of Garden Reach Shipbuilders stood at 69.5, signaling it's trading neither in the overbought nor in the oversold zone.

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