GRSE shares slip 4% despite signing contract to build 2 coastal research vessels

Shares of Garden Reach Shipbuilders and Engineers (GRSE) Ltd settled lower on Wednesday even as the defence PSU signed a pact with the Geological Survey of India (GSI) for the construction of two coastal research vessels (CRVs). GSI is a geo-scientific agency of the government.

The stock today declined 4.15 per cent to close at Rs 3,098.95. However, it has rallied 70.23 per cent in the past one month. "Please refer our letter No. SECY/GRSE/BD-69/CA/04/25-26 dated April 9, 2025, wherein we have communicated about the 'Receipt of Letter of Award for Construction and Delivery of Two Coastal Research Vessels for the Geological Survey of India'. In terms of Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the company has signed the Contract for Construction of two CRVs for the GSI on June 11, 2025. There has been no change in the Financial Implication of the Order/ Contract." GRSE stated in a BSE filing.

"The signing of this contract highlights GRSE's expertise in the field of research platforms. The shipyard is currently building an Ocean Research Vessel (ORV) for the National Centre for Polar and Ocean Research (NCPOR), under the Ministry of Earth Sciences, Government of India, and an Acoustic Research Ship (ARS) for the Naval Physical and Oceanographic Laboratory (NPOL), an establishment under the Defence Research and Development Organisation (DRDO)," it also said.

"Each CRV will have a length of 64 meters with a width of 12 meters. The deadweight tonnage of each CRV will be about 450 Tons. The vessels will have an endurance of 15 days with a top speed of 10 knots. Each ship will have facilities for 35 personnel on board," GRSE added.

Bourses BSE and NSE have put the securities of GRSE under the long-term ASM (Additional Surveillance Measure) framework. Exchanges place stocks in short-term or long-term ASM frameworks to alert investors about high volatility in share prices.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that GRSE has seen a strong rally recently. "The stock has shown solid upward momentum, breaking past resistance levels and moving into overbought territory. Investors should keep a trailing stop loss to lock in gains. A cautious stance is recommended at present," he stated.

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.