GRSE shares rally 105% in 6 months; what's the road ahead?

Shares of Garden Reach Shipbuilders & Engineers (GRSE) Ltd declined again on Friday, ending a brief one-day pause in their downward trend. The stock dropped 3.31 per cent to touch a day low of Rs 2,800.10 and was last seen trading 2.84 per cent lower at Rs 2,813.60. Despite today’s dip, the multibagger has surged 105.23 per cent over the past six months.

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.

One analyst noted that a time-wise correction could be likely post the recent sharp rally, while another recommended accumulating the stock on dips, suggesting a positive long-term outlook despite near-term volatility.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, advised investors to accumulate GRSE shares on every dip from a medium- to long-term perspective, adding that existing shareholders can continue with their positions.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that GRSE is currently experiencing price volatility. He explained that, following its sharp upward movement, a time-wise correction could be on the cards. However, given the ongoing momentum, he recommended using a trailing stop loss to maximise gains. On the support front, Krishan identified the Rs 2,800–2,750 range as a key intermediate support zone, with additional support seen around Rs 2,500.

The scrip traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 44.36. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 61.25 against a price-to-book (P/B) value of 17.54. Earnings per share (EPS) stood at 46.04 with a return on equity (RoE) of 28.63. According to Trendlyne data, GRSE has a one-year beta of 1.4, indicating high volatility.

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.