Garden Reach Shipbuilders shares fall 56% from record high, down for sixth day; what's next?

 
Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) have fallen 56% from their record high. The defence stock has turned weak in the short term, losing for the sixth straight session today. The stock reached its record high of Rs 2,834.60 on July 5, 2024.Garden Reach Shipbuilders & Engineers stock fell 4% to Rs 1243.60 today against the previous close of Rs 1295.75 on BSE. Market cap of the firm slipped to Rs 14,294 crore. 

On BSE, around 0.32 lakh shares changed hands amounting to a turnover of Rs 4.09 crore. 

The multibagger defence stock has climbed 58% in a year and risen 179% in two years. The stock saw a big correction of 36% in the last six months. 

Garden Reach Shipbuilders stock has a one-year beta of 1.8, indicating high volatility during the period.

Shares of Garden Reach Shipbuilders fell to their 52-week low of Rs 674.25 on March 13, 2024. 

In terms of technicals, the relative strength index (RSI) of Garden Reach Shipbuilders stood at 30.5, signaling it's trading near the oversold zone. 

Antique Broking is bullish on the stock with a price target of Rs 1,783. 

"The company’s present order book stands at Rs 238.8 bn with major projects on track to be executed in the next 3–4 years (current order book comprises of 10 projects with 40 different platforms, including four export projects spanning 10 platforms). The company has submitted bids for next generation corvettes (L1 declaration expected by end of 4QFY25). On the non-defence front, the focus is on ship building and green energy platforms such as hybrid ferries, green tugs, which offer decent opportunities for growth. We retain our estimates and maintain BUY rating on the stock with a TP of Rs 1,783 at a core target P/E multiple of 30x FY27 earnings," said Antique Broking.