New Delhi, Sept. 22 -- Shares of Garden Reach Shipbuilders & Engineers (GRSE) rose as much as 3.6% on Tuesday, 22 September, after the defence PSU approved a Rs.2,896 crore capital budgetary outlay for a greenfield shipyard at Raichak in West Bengal's South 24 Parganas district.

The new facility is aimed at expanding GRSE's shipbuilding capacity across both the naval and commercial segments. The approval is part of the company's broader capacity expansion strategy, which includes investments in multiple facilities in West Bengal.

For investors, the key question now is whether the sizeable expansion can translate into stronger order execution and earnings growth over the medium- to long-term.

The Raichak investment is designed to streng...