BackVaishali Parekh's technical pick, Garden Reach Builders may see 12% upside
Stock Market Today- Garden Reach Shipbuilders and Engineers remains medium-term technical pick of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher. Parkeh sees a 12% upside for the stock from current levels to a target price of ₹907.
PremiumGarden Reach Shipbuilders and Engineers share price on Tuesday ended with gains of 2.9%. The stock remains medium term technical pick of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher. Parkeh sees a 12% upside for the stock from current levels to a target price of ₹907.
The stock has witnessed a decent consolidation phase near the important 50 EMA (Exponential Moving average) level of 765-770 zone and currently with a positive candle formation has come out of the rectangular box to improve the bias and anticipate for further rise in the coming days, said Parekh.
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The RSI (Relative Strength Index) has indicated a trend reversal from the oversold zone and currently is well placed, indicating strength to carry on with the momentum still further ahead from current levels. With the chart looking good, we suggest buying and accumulating the stock for an upside target of 907 keeping the stop loss of 770.
Garden Reach Shipbuilders & Engineers, during Q2 had seen revenue rise 32% year-on-year. Its Current execution includes three P-17A frigates (first frigate at 60% completion in Q2FY24 versus 50% in Q1FY24, second at 51% versus 45%, and third at 40% versus 30%, suggests Elara Securities India Pvt Ltd data. Data further suggests four survey vessels (first at 90% completion in Q2 versus 80% in Q1, second at 76% versus 70%, third at 66% versus 55% and fourth at 52% vs 40%); eight anti-submarine warfare shallow water craft (ASW-SWC; 50% construction for three ships); six patrol boats for Bangladesh (targeted execution by FY24); next-generation electric ferry for West Bengal government; and two next-gen offshore patrol vessel (NGOPV), are also under Garden Reach' s current execution.
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However, some orders have been delayed, adding to concerns as per Elara Securities analysts. Eight next-generation corvette (NGC) worth ₹36000 crore with a RFP (Request for proposal) likely in CY24 (earlier timeline from March 2024)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisionsAlsolso
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