GRSE shares slip 8% from record high level but still up 77% in a month; what lies ahead?

Shares of Garden Reach Shipbuilders & Engineers (GRSE) Ltd declined on Friday, halting their strong three-day record run. The stock fell 4.69 per cent to close at Rs 3,246.90, marking a 7.97 per cent drop from its all-time high of Rs 3,528 hit in the previous session. Despite the pullback, the counter has still surged 77.22 per cent over the past month.

The Kolkata-based defence PSU has recently signed several agreements with international players. It entered into a memorandum of intent (MoI) with Germany-based Rehder Schiffsmakler und Reederei GmbH & Co KG for building four follow-on 7,500 DWT multi-purpose vessels.

GRSE also signed a memorandum of understanding (MoU) with Dubai-based Aries Marine for designing offshore platforms and vessels. In addition, it has partnered with a global engine manufacturer through a separate agreement.

An analyst noted that the stock has entered overbought territory on the charts following its sharp rally. With that being said, immediate support is expected around Rs 3,200 level.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that GRSE has seen a strong rally over the last four weeks, hitting new record highs. "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. Since the stock is now trading well above its short-term moving averages, a cautious stance is recommended," he stated.

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said, "Support will be at Rs 3,200 and resistance at Rs 3,500. A decisive move above Rs 3,500 level may trigger a further upside towards Rs 3,600. The expected trading range will be between Rs 3,100 and Rs 3,600 for the short term."

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 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.