The PSU multibagger defense stock gets an upgrade from the brokerage. do you have

However, there has been no change in the target price 385, which represents a decline of 9% from the current levels. GRSE shares were trading up by 1.02 per cent. 422.80 each nse Friday late afternoon deals.

“The inventory The correction has been in line with our expectations and we see relatively limited downside here, as earnings are likely to decline after FY27E, ICICI Securities said in its report.

The state-owned shipbuilding and repair company has given multibagger returns to investors in the last one year period. It has climbed 111 per cent.

Also, GRSE stock has gained about 59.09 per cent in the last six months. Meanwhile, shares are down 10 per cent on a year-to-date basis in 2023.

“GRSE stock has given negative returns of 14% and 18% in last one month and three months respectively. At current market price, we believe in stock factors-earnings till FY25E and most of our concerns related to firm’s shortfall orders beyond the existing orderbook in,” the brokerage said.

“We believe there are several opportunities in the pipeline over the medium term. Therefore, we upgrade the stock to REDUCE (from Sell). We will keep a close eye on incremental orders, which are critical to the future earnings trajectory.” Added.

During an investor call, the management indicated that the latest orders have been bagged through competitive bidding, so margins in nomination contracts could be below 7.5 per cent.

“Despite efforts to control costs and higher ‘other income’, which has resulted in 8-10% margins, we do not see margins exceeding 11% in the medium term as advances to ‘other income’ in the form of cash Downside is likely. Short and incremental orders (especially exports) are won through competitive bidding, the brokerage said.