The stock has gained for the third day in a row and has now advanced in 10 out of the last 11 trading sessions.
With this move, Garden Reach has taken its gains over the last one month to 66%.
Shares of Garden Reach Shipbuilders had made a low of ₹1,180 on March 4 this year. In the 52 trading sessions since then, the stock has surged 143%. At the March lows, the stock was down 60% from its earlier peak of ₹2,833.
Defence stocks, including Garden Reach, have been on a tear in the recent past since Operation Sindoor put Indian defence equipment in the spotlight. Prime Minister Narendra Modi also called for more defence equipment to be Made in India.
For the March quarter, Garden Reach reported 61% growth in its topline, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 144%. Margins also expanded by 454 basis points.
The management in its earnings call said that it is likely to reach peak execution in financial year 2026. It also said that the deliveries of the first P17 Alpha Ships will happen in two months from now, which is ahead of scheduled.
On Thursday, Garden Reach informed the exchanges that it has emerged as the lowest (L1) bidder for the construction of Next Generation Corvettes (NGC) for the Indian Navy. The lowest bidder, GRSE in this case, will be awarded five of the eight NGC ships, and the contract is valued at over ₹25,000 crore.
Garden Reach does not have much analyst coverage but out of the five analysts that cover the stock, three of them have a “buy” rating, while two have a “sell” recommendation on the stock.
Antique Stock Broking has a price target of ₹3,009, while Asian Market Securities has a target of ₹3,500 on Garden Reach.
Shares of Garden Reach Shipbuilders are off the highs of the day, having made an intraday high of ₹2,896, currently trading 2.7% higher at ₹2,830.
