Garden Reach Shipbuilders shares remained steady at ₹1717.25 on Wednesday

Shares of Garden Reach Shipbuilders & Engineers Ltd ended flat at ₹1717.25 on the Bombay Stock Exchange (BSE) on Wednesday. With a market capitalisation of ₹ 19,671 crore, this warship manufacturer has caught the eye of investors, especially after recent developments. Although the stock price remained unchanged on Wednesday, the company gained attention by securing a significant international order, highlighting potential opportunities for those looking to invest in stocks in this sector.

New order secured amid stock volatility

Garden Reach Shipbuilders has announced a $54-million order for the construction and delivery of four additional multi-purpose vessels. The deal was confirmed with Germany-based Carsten Rehder Schiffsmakler and Reederei GmbH & Co. The company is set to design, build, and deliver these vessels over the next 33 months.

While the stock ended flat on Wednesday, it has shown considerable volatility throughout the year. The stock reached a 52-week low of ₹648.05 on October 26, 2023, and a 52-week high of ₹2834.60 on July 5 this year. This fluctuation reflects the stock’s beta of 1.3, indicating higher volatility compared to the market.

Is it the right time to invest in stocks like Garden Reach?

Garden Reach shares are currently trading above their 150-day and 200-day moving averages, which may suggest some long-term stability. However, they are below shorter moving averages, such as the 10-day, 20-day, 30-day, 50-day, and 100-day, which could point to some recent weakness in momentum. Given the stock’s volatility, prospective investors should carefully assess their risk tolerance if they plan to invest in stocks like Garden Reach.

Key takeaways

• Garden Reach Shipbuilders closed flat at ₹1717.25 on Wednesday.
• The company secured a $54-million order for four additional multi-purpose vessels.
• Stock volatility is high, with a beta of 1.3 and significant price fluctuations.
• Shares are above 150-day and 200-day moving averages but below several shorter-term averages.