GRSE STOCK ANALYSIS
GRSE STOCK ANALYSIS
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NIFTY moving higher and higher giving tough time to investors who want to buy stocks at reasonably low price i.e. undervalued stocks. Still, there are opportunities in the defence sector which often go unnoticed. A good stock picker is someone who is always keep looking for such undervalued companies.
WHAT DO FUNDAMENTALS SAY?
Garden Reach Shipbuilders & Engineers (GRSE) is quite a prominent name in the defence space under the administrative control of Ministry of Defence. 89% of revenues come from Shipbuilding activity for Indiana Navy. It supplies various boats, pontoons, barges, fishing trawlers, fire floats, tugs, dredgers, passenger ferries, motor cutters, deck whalers, launch, etc. to various other customers. This large cap company has Rs 20000 crores market cap and is having a annual sales of less than 4000 Crores but it has a solid order pipeline of over 25000 crores, which is 6 years of business in hands. The recent correction has reduced its PE ratio to 54, which is way below Industry PE of 75, making it an undervalued stock. Both ROE and ROCE are in 25-30% range, showing sound and profitable business of GRSE.
WHAT DO TECHNICAL SAY?
The Head & Shoulder pattern is completed now on daily chart.
After a long range bound movement, the stock gave bullish breakout in April 2024 leading to a spectacular rally from 685 to breaking 2700 level in July. The much awaited time correction started from there and currently its trading at 1700 levels, making it a potential candidate for buy on dips folks. The major support at 1600 can make bulls interested and can take the stock above 2700 to continue its long term bull run.
Thu Sep 12, 2024
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