Garden Reach Shipbuilders‘ share price was racing at the bourses on Monday going up over 5% to hit an intraday high of ₹1,870.

What Happened: Garden Reach Shipbuilders won a ₹491 crore contract to design and build an Acoustic Research Ship (ARS). The Kolkata-based company announced receiving a letter of intent from the Naval Physical & Oceanographic Laboratory (NPOL) under the Defence Research & Development Organisation over the weekend.

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The contract covers the complete design, construction and integration of equipment, along with the ship’s testing, certification, and commissioning. It is expected to be completed within 36 months from the signing of the contract.

Garden Reach was also one of the top picks of brokerage firm Anand Rathi. The analysts said the stock is now rebounding from its 200 daily exponential moving average and the key 61.8% Fibonacci retracement level, signalling a potential trend reversal with a higher top and higher bottom pattern.

Earlier in September, the company was upgraded from “Schedule B” to “Schedule A” central public sector enterprise (CPSE) by the Government of India.

Price Action: Garden Reach’s share price was up 4.95% to trade at ₹1,852 as the markets opened on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.