GRSE shares rally 43% in a month; analysts advise caution post stellar run

Shares of Garden Reach Shipbuilders & Engineers (GRSE) Ltd on Monday edged up 0.07 per cent to settle at Rs 2,482.50. At this closing price, the stock has ascended by 42.65 per cent on a monthly basis.

The defence PSU looked overbought in the short term. A few analysts warn of potential selling pressure near resistance levels while long-term sentiment remains positive. Investors should trade with caution and profit protection is advised at current levels.

"We've witnessed exuberance in most defence stocks, including GRSE. At present, the stock has entered the overbought zone. Investors should consider booking some profit," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

The stock has approached a critical resistance zone between Rs 2,650 and Rs 2,700. "GRSE has witnessed a sharp rally this month. It has now approached a key resistance zone between Rs 2,650 and Rs 2,700, close to its all-time high of Rs 2,834.60. This critical level often prompts profit booking, which could lead to short-term selling pressure. Given the steep rise, a brief correction is possible before any fresh breakout attempt," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Support on the counter will be at Rs 2,450 while resistance will be at Rs 2,650," said Ravi Singh, SVP - Retail Research at Religare Broking.

The potential for short-term selling is high and investors are advised to trail profits with stop losses. "The recent vertical move might attract some profit booking, thus a cautious view is advisable. Rs 2,250-2,200 range is likely to cushion intermediate blips, with strong support seen around the bullish gap of Rs 2,100 subzone. It is advisable to trail profits with stop losses," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

The company is a premier warship-building company under the administrative control of the Ministry of Defence. As of March 2025, the government held a 74.50 per cent stake in the state-owned firm.