Buy Garden Reach Ship&eng: IIFL Securities's Target Price Rs 980
IIFL Securities has issued a buy recommendation for Garden Reach Shipbuilding & Engineering Limited (GRSE), with a target price of Rs 980, representing an upside potential of around 4%. The current market price of GRSE is Rs 942.75. The brokerage firm believes that the company is well-positioned to benefit from the government's focus on strengthening the country's defense infrastructure. GRSE has a strong order book and is expected to secure additional contracts in the coming quarters.
About Garden Reach Ship&eng:
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a leading Indian shipbuilding company listed on the National Stock Exchange (NSE) of India. Headquartered in Kolkata, it is primarily engaged in the design, construction, and repair of warships, auxiliary vessels, and passenger ferries for the Indian Navy, Coast Guard, and other defense and paramilitary forces. GRSE also provides offshore engineering and construction services, including the development of offshore wind farms and underwater systems. The company has a fully integrated shipbuilding facility spread across 104 hectares on the banks of the Hooghly River, offering a broad range of products and services to meet the diverse requirements of the Indian defense and maritime sectors.
52 Week Price Trend:
Garden Reach Ship&eng (NSE:GRSE) is currently trading at Rs 942.75. This is below its 52-week high of Rs 974.8 and above its 52-week low of Rs 398.3. The stock has been in a sideways trend for the past few months, with no clear direction. The company's fundamentals are strong, with healthy revenue growth and profit margins. However, the stock is trading at a premium valuation, which could limit its upside potential in the short term. Investors should monitor the stock's price action and consider buying on dips if the price falls below Rs 800.
Stratzy's MOST Analysis:
Stratzy's proprietary MOST Framework assigns GRSE an AA rating based on an analysis of four key pillars: Management, Outlook, Safety, and Trend. This rating indicates that GRSE has medium Fundamental Risks, based on an overall score that combines the individual assessments of each pillar.
Company's Fundamentals:
Garden Reach Ship & Eng (GRSE) is a shipbuilding company listed on the National Stock Exchange (NSE). The stock's Price-to-Earnings (PE) ratio of 30.93 indicates that investors are willing to pay 30.93 times the company's annual earnings per share for a share of the company. The Price-to-Book (PB) ratio of 5.95 suggests that the company's market value is 5.95 times its book value, which is a measure of the company's assets. Lastly, the dividend yield of 0.97% represents the annual dividend paid per share as a percentage of the current market price of the stock. It indicates the potential income investors can earn from dividends.
Fundamental and Technical information provided in this blog were last updated on 23 Apr, 2024
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