Garden Reach Shipbuilders Ltd., a state-run shipbuilder, has signed two non-binding Memorandum of Understanding (MoUs) for collaboration in various areas. The first MoU is with M/s Merlinhawk Aerospace Pvt. Ltd. for the development of composite doors and hatches, hydrogen fuel cells, Counter UAV Solutions, and more for Naval Ships. The second MoU is with Kerala State Electronics Development Corporation Ltd. to work on core futuristic technologies for under-water surveillance. The financial implications of these collaborations are yet to be determined. Market focus on the shipping sector has intensified due to the upcoming Union Budget, with expectations of a Maritime Development Fund allocation of ₹15,000 crore to ₹20,000 crore. This Fund could provide long-term loans at a lower cost for shipbuilders. Despite positive market reactions, brokerage firm Nirmal Bang has downgraded the defence sector due to high valuations, highlighting execution risks. Garden Reach shares have risen by 4%, trading at ₹2,553.15, reflecting investor optimism. However, concerns remain about the stock's price-to-earnings multiple of 47 times, higher than the five-year average. The article questions if shares like Mazagon Dock, Cochin Shipyard, and Garden Reach have experienced excessive growth prematurely.