Garden Reach Shipbuilders shares in news after defence firm inks contract worth Rs 491 crore

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) are in news on Monday after the defence firm said Garden Reach Shipbuilders & Engineers said that it has received letters of intent of award for a contract worth Rs 491 crore from the Naval Physical & Oceanographic Laboratory, Gol, Ministry of Defence DRDO, Kochi.

Garden Reach Shipbuilders stock gained 1.22% to Rs 1765.15  on Friday against the previous close of Rs 1743.80 on BSE. Market cap of the firm rose to Rs 20,220 crore. 

On BSE, around 0.97 lakh shares changed hands amounting to a turnover of Rs 17.21 crore. 

The multibagger defence stock has climbed 122% in a year and risen 287% in two years. Garden Reach Shipbuilders stock has a one-year beta of 1.4, indicating high volatility during the period.

Shares of Garden Reach Shipbuilders fell to their 52-week low of Rs 648.05 on October 26, 2023. 

In terms of technicals, the relative strength index (RSI) of Garden Reach Shipbuilders stood at 51.4, signaling it's trading neither in the overbought nor in the oversold zone. 

The contract is for design, development, construction, integration of equipment, testing, certification, commissioning & supply of one acoustic research ship (ARS).

The project has to be executed within a period of 36 months.

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