Bajaj Broking Identifies GRSE and NBCC for Potential 9% Gains

Bajaj Broking has selected Garden Reach Shipbuilders & Engineers (GRSE) and NBCC as its top stock picks, aiming for a 9% return on each. GRSE has a target price of ₹2918 within six months, while NBCC is eyed at ₹101 within a month. The brokerage's choices are driven by technical indicators and attractive risk-reward scenarios.

GRSE: Technical Support Points to Upside

Bajaj Broking has set a price target of ₹2918 for GRSE, suggesting a potential 9% increase over the next six months. The stock is currently consolidating near a key demand zone between ₹2500 and ₹2600. This area aligns with the 61.8% Fibonacci retracement level of a recent rally and the 200-day Exponential Moving Average (EMA) around ₹2560. A previously breached trendline is also expected to offer support near ₹2550. Analysts see this price action as a solid base for upward movement towards the target.

NBCC: Short-Term Opportunity Identified

NBCC is recommended for purchase in the ₹91.00-₹93.50 range, with a target of ₹101, anticipating a 9% return within a month. The stock is trading near its 50-day EMA and a bullish gap from April 15, 2026. The daily stochastic indicator shows a buy signal, supporting the potential for further gains.

Sector Context: Shipbuilding and Construction

GRSE operates in the Indian shipbuilding sector, which, despite its importance, faces global competition. The sector aims for significant scaling by 2047. As a public sector undertaking, GRSE primarily focuses on defense and naval vessels, expected to benefit from increased government defense spending. Its trailing twelve months (TTM) P/E ratio is approximately 39.54, with a market capitalization around ₹30,333 crore. Competitors include Mazagon Dock Shipbuilders (MDL) and Cochin Shipyard (CSL).

NBCC is a government-owned entity in the construction and project management sector, focusing on public sector projects. Its TTM P/E ratio is around 38.38, with a market capitalization of approximately ₹251.34 billion. NBCC reported a 38.5% year-on-year net profit increase for Q3 FY26. Analyst consensus is largely positive, with average 12-month price targets around ₹140.76. Peers include Kalpataru Projects International and IRB Infrastructure Developers.

Potential Challenges

While technicals are positive, the Indian shipbuilding sector lags global players in capacity and technology. GRSE's growth is linked to government defense contracts and budgetary allocations. Its P/E ratio of 39.54 is considered high by some industry benchmarks. For NBCC, potential risks include execution challenges and long project timelines for infrastructure development. Its projected revenue growth for FY26 is moderate at 9.5%, which is lower than the projected 13% increase for the broader Indian construction industry.