GRSE hits record high after Norway deal for India’s first Polar Research Vessel; stock up 95% in one year

Shares of Garden Reach Shipbuilders & Engineers (GRSE) were in sharp focus on Tuesday after the defence PSU inked a strategic agreement with Norway’s Kongsberg for indigenous construction of India’s first Polar Research Vessel (PRV). The development sent the stock surging to fresh record highs, making it one of the standout performers in the defence and PSU space.

GRSE stock jumps 6% to lifetime high, turnover crosses Rs 246 crore

GRSE shares rallied 6.19 per cent to close at Rs 3,149 on the BSE, with intraday highs hitting Rs 3,188.75—the highest level ever recorded for the stock. The company’s market capitalisation now stands at Rs 36,082 crore.

Trading activity was robust, with over 7.94 lakh shares changing hands, generating a total turnover of Rs 246.62 crore, signalling strong institutional and retail interest.

95% gains in 1 year; stock zooms 797% in 3 years

GRSE has proven to be a consistent wealth generator. Over the past one year, the stock has delivered 95 per cent returns. On a longer three-year horizon, it has rallied a whopping 797 per cent, riding the wave of defence capex, PSU re-rating, and indigenous manufacturing push under the government’s Make in India initiative.

Such a sharp multiyear rally positions GRSE as one of the top-performing defence PSUs in recent years.

Technical indicators signal overbought conditions

On the technical front, GRSE appears overbought, with the Relative Strength Index (RSI) standing at 79, well above the 70 threshold. While this signals strong momentum, it also suggests that investors should be cautious of potential near-term consolidation or profit booking.

However, the breakout to new highs and the sustained rise in volumes indicate that underlying sentiment remains bullish.

Polar Research Vessel deal: A big strategic boost

The highlight for the stock’s latest surge was the MoU with Kongsberg, which opens the gateway for India to build its first Polar Research Vessel domestically. GRSE will leverage Kongsberg’s design expertise to construct the PRV at its Kolkata shipyard, further strengthening its portfolio beyond warships into research and exploration domains.

This aligns with India’s ambitions to expand polar exploration and underscores GRSE’s capabilities in handling complex marine projects.

Market Outlook

With the stock making record highs and delivering multibagger returns, GRSE remains a key contender in the defence manufacturing space. The firm’s foray into advanced vessel construction like PRVs is expected to unlock new revenue streams.

That said, analysts suggest monitoring the stock’s RSI and volume trend to gauge entry levels. The long-term trend remains strong, supported by strategic deals and robust government backing in the defence sector.