GRSE Stock Steers Bulls Blitzkrieg in Defence Sector Scrips

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Defence PSU rallies as bullish technical signals, dividend buzz, and next-gen naval contracts fuel investor optimism amid India’s 200-warship push by 2035.

By S JHA

MUMBAI, September 12, 2025 — Garden Reach Shipbuilders & Engineers (GRSE) soared over 7% on Friday, hitting an intraday high of ₹2,589 as defence stocks rallied across the board. The breakout above its downtrend line, backed by strong volumes, suggested fresh buying interest, with analysts eyeing the ₹2,750–3,000 zone as the next resistance.

The surge coincided with the company’s ₹4.9 per share dividend record date and growing sectoral momentum, as the Nifty India Defence Index climbed nearly 3.8%. Market watchers highlighted the breakout as a potential trend reversal after months of correction, provided the stock sustains above the ₹2,520–2,550 zone.

Strategic tailwinds are also in play. GRSE is in advanced negotiations with the Ministry of Defence and Indian Navy for a next-generation corvette contract worth about ₹25,000 crore, expected to conclude within FY26. “This is going to be a high-value order, and I expect it to be concluded during the current financial year,” CMD P.R. Hari said recently.

India’s broader naval ambitions add further momentum. By 2035, the Indian Navy aims to operate over 200 warships and submarines, with 55 currently under construction and 74 more projects worth ₹2.35 lakh crore already approved. Pending contracts include submarines, frigates, corvettes, and mine countermeasure vessels, positioning shipbuilders like GRSE, Mazagon Dock, and Cochin Shipyard at the forefront of the Make-in-India defence push.

At the industry level, GRSE also showcased its ship repair and maintenance capabilities at INMEX SMM India 2025 in Mumbai, where Director (Shipbuilding) Cdr Shantanu Bose (Retd.) stressed efficiency gains and adoption of new technologies.

With technical momentum aligning with policy and contract flows, investors are betting that GRSE could anchor the next big wave in India’s shipbuilding story.

Besides GRSE, a number of defence stocks witnessed frenzied buying from investors. BEML stock spurted with over 7% gains. Mazagaon Dock Shipyard and Cochin Shipyard also extended gains on Friday.

The likes of Bharat Dynamics, Paras Defence, Bharat Electronics, Data Patterns, MTR Technologies, and others saw frenzied buying in their counters.

The buying in defence stocks has been seen after several months of sideways or downward trends. The spurt in the defence stocks also coincided with reports of a possible thaw in India-US relations.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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