GRSE shares decline further, down 4%; here's what analysts say

Shares of Garden Reach Shipbuilders & Engineers (GRSE) Ltd extended their decline for a second consecutive session on Wednesday, slipping as much as 3.61 per cent in intraday trade. The stock touched a low of Rs 3,070, before slightly recovering to trade 2.61 per cent down at Rs 3,102. This comes after a strong upward rally that saw the defence PSU nearly double investors' wealth in the past six months.

Despite the recent correction, analysts believe GRSE remains a fundamentally strong counter, though they advise investors to be cautious in the near term. Market volatility, coupled with the stock's sharp rise in recent months, could trigger further profit booking in the near term.

Both the BSE and NSE have placed GRSE under the long-term Additional Surveillance Measure (ASM) framework. The ASM framework is a regulatory mechanism aimed at alerting investors about unusual price movements or volatility in specific stocks.

The state-run firm recently signed an agreement with the Geological Survey of India (GSI) to build two coastal research vessels (CRVs). GSI, a key government agency for geoscientific activities, will use these vessels for coastal exploration, further boosting GRSE’s order book and expanding its research vessel portfolio.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted, "GRSE could be entering into a consolidation phase after a stellar rally. Investors with a long-term view should hold the stock and consider accumulating on dips."

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Following the recent vertical ascent, profit-taking seems likely. A trailing stop loss is recommended to safeguard gains. Key support zones are seen around Rs 2,900–2,800, with a stronger base near Rs 2,500."

Drumil Vithlani, Technical Research Analyst at Bonanza, said, "The stock has immediate support around Rs 3,080. If it slips below this level and sustains, it could see further downside towards Rs 3,000–2,950. However, a close above Rs 3,150 would negate the bearish outlook."

GRSE, under the administrative control of the Ministry of Defence, is a premier warship-building company for the Indian Navy. As of March 2025, the government holds a 74.50 per cent stake in the firm, reinforcing its strategic importance in India’s defence manufacturing landscape.