GRSE shares rallied over 60% in a month; analysts share mixed views

Shares of Garden Reach Shipbuilders and Engineers (GRSE) Ltd climbed 2.97 per cent on Friday to settle at Rs 3,067.15, pausing their three-day fall. The uptick followed news of Israel launching a series of military strikes on Iran, sparking concerns over a wider geopolitical conflict and boosting investor demand for defence-related shares.

At today's closing level of Rs 3,067.15, the counter has soared 60.16 per cent in the past one month. 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.

The defence PSU signed a pact with the Geological Survey of India (GSI) a couple of days back for the construction of two coastal research vessels (CRVs). GSI is a geo-scientific agency of the government.

A few market experts remain mixed on GRSE. One of them sees strong earnings visibility and suggests buying on dips, while another advises caution after the sharp recent rally.

Kranthi Bathini, Director of Strategy at WealthMills Securities, said, "Some profit booking has been witnessed in recent sessions. However, GRSE's strong order book projects good earnings visibility. Long-term investors may look at accumulating the stock on dips."

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.