GRSE rallies on bargain buying

Garden Reach Shipbuilders & Engineering (GRSE) jumped 2.08% to Rs 1,814.30 on bargain hunting after declining for two trading sessions.

The stock slipped 9.63% in the past two trading sessions to end at Rs 1,777.25 on yesterday, from its recent closing high of Rs 1966.70 recorded on 16 August 2024.

On the BSE, 1.99 lakh shares were traded in the counter so far compared with average daily volumes of 1.13 lakh shares in the past two weeks. The stock hit a high of Rs 1,865.10 and a low of Rs 1,726.10 so far during the day.

The stock hit a 52-week high of Rs 2,834.60 on 5 July 2024. The stock hit a 52-week low of Rs 648.05 on 26 October 2023.

 

The stock had underperformed the market over the past one month, declining 29.51% compared with 0.3% increase in the Sensex.

The scrip had outperformed the market in past three months, advancing 49.97% as against Sensex's 9.18% jump.

The counter had outperformed the market in past one year, soaring 138.9% as against 23.81% rise in Sensex.

On the technical front, the stock's daily RSI (relative strength index) stood at 34.097. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading below its 50-day simple moving average (SMA) placed at 2,147.35, respectively. Such level will act as resistance in the near term.

State-run GRSE is engaged in building warships and other vessels for the Indian Navy and Indian Coast Guard. It has also diversified into engineering business with a product profile of pre-fabricated steel bridges, various deck machinery items and assembly, as well as testing & overhauling of marine diesel engines. As on 30 June 2024, the Government of India holds 74.50% in the company.

The company reported 13.71% increase in sandalone net profit to Rs 87.19 crore in Q1 FY25 as against Rs 76.68 crore posted in Q1 FY24. Revenue from operations jumped 33.58% year on year (YoY) to Rs 1,009.72 crore in the quarter ended 30 June 2024.

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