Garden Reach Shipbuilders
Garden Reach Shipbuilders
Aerospace & DefenseKey Fundamentals
SmallcapEngineeringAerospace & DefenseTapetide Score
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Key Insights
Strengths
5- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 36.1% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 27.7%
- Company has been maintaining a healthy dividend payout of 29.1%
Weaknesses
4- Stock is trading at 9.21 times its book value
- Contingent liabilities of Rs.7,959 Cr.
- Earnings include an other income of Rs.301 Cr.
- Debtor days have increased from 34.0 to 63.6 days.
Growth Rate
AI Analysis — Bull vs Bear
Garden Reach Shipbuilders & Engineers has a market cap of about Rs 25,946 Cr. Over the last 5 years, sales grew at a 44% CAGR and profit at a 36% CAGR, and ROE was 32% last year. The stock trades at 33.2x earnings and 10.1x book value. Earnings include Rs 301 Cr of other income, debtor days rose from 34.0 to 63.6, and the stock is down 11% over the past year despite a 65% 5-year CAGR.
- Revenue has grown fast: sales compounded at 44% over 5 years and 40% over 3 years, and TTM sales growth is also 40%. That is a big step up from the 10-year CAGR of 16%.
- Profit growth is speeding up. Profit compounded at 50% over 3 years and 43% TTM, compared with 36.1% over 5 years.
- Return on equity keeps improving. It was 32% last year, 28% over 3 years, 24% over 5 years and 19% over 10 years.
- The company is almost debt-free, which keeps its balance sheet flexible for working capital needs on long shipbuilding contracts.
- The company pays out 29.1% of profit as dividends while still growing quickly. The dividend yield is 0.85%.
- Long-term shareholder returns have been strong, with a 5-year stock CAGR of 65% and a 3-year CAGR of 40%.
- A P/E of 33.2x is modest next to 3-year profit growth of 50% and TTM profit growth of 43%.
- At 10.1x book value, the stock prices in continued high returns on equity and leaves little room for disappointment.
- Rs 301 Cr of earnings comes from other income. That flatters reported profit and the 33.2x P/E compared with core operating earnings.
- Debtor days nearly doubled, from 34.0 to 63.6, which points to slower collections and more cash tied up in working capital.
- The stock fell 11% over the past year despite 40% TTM sales growth. This suggests the valuation is being re-rated even as fundamentals improve.
- Over 10 years, sales and profit compounded at only 16%. Part of the recent 40%+ growth may therefore come from an order cycle rather than a lasting structural change.
- The 0.85% dividend yield is low for income-focused investors, even with a 29.1% payout ratio.
- Revenue depends heavily on government defence orders. At a Rs 25,946 Cr valuation, delays in execution or new orders could hurt sentiment and future growth.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Technical downtrend, bearish momentum Sep 21
The stock broke below its key support zone of ₹2,470–₹2,460 and is trading under its key moving averages. Sudeep Shah of SBI Securities says a rising ADX points to strengthening bearish momentum.
- Weak one-month and one-year returns Sep 21
Even after the rally, GRSE is down 7.3% over one month and 9.6% over the past year. It has gained only 2.2% across the last five sessions.
- Raichak cost above earlier earmark Sep 22
The board approved ₹2,896 crore for Raichak, roughly 16% above the ₹2,500 crore earmarked in August and more than the full ₹2,670 crore three-facility programme. That raises funding and execution risk for a company with a ₹27,517 crore market cap.
- MoUs carry no near-term financials Sep 3
GRSE said no financial implication has been determined yet from the DNV and Damen MoUs. Any revenue benefit is still speculative.
- ₹2,896 cr Raichak shipyard approved Sep 22
The board approved the greenfield Raichak shipyard at its 423rd meeting on Sep 21. It will have a 200-metre dry dock for warships up to 200 m and commercial vessels up to 60,000 DWT. The stock rose 4% to an intraday high of ₹2,459.20, from ₹2,372.20, on volume above 425K shares.
- Strong Q1 profit and revenue growth Sep 21
Standalone net profit rose 43.82% YoY to ₹172.84 crore. Revenue from operations grew 38.53% to ₹1,814.62 crore from ₹1,309.9 crore.
- DNV and Damen tech MoUs Sep 3
GRSE signed MoUs at SMM Hamburg on Sep 2: with DNV for advanced warships, green shipping and digital shipbuilding, and with Damen for TSHD and WID dredger design. The stock rose 1.5% to ₹2,531.8 on the news.
- Strong long-term wealth creation Sep 21
The stock has returned more than 1,163% over five years and more than 198% over three years. GRSE has built 800+ platforms, including 118 warships, and can build up to 28 ships at once across four shipyards.
- ₹19.60 FY26 dividend approved Sep 25
The 110th AGM approved a total FY26 dividend of ₹19.60 per share and confirmed director appointments. The record date for the final dividend was Sep 18, with payment due within 30 days of AGM approval.
- S K Agrawal named statutory auditor Sep 25
The CAG appointed M/s. S K Agrawal and Co. LLP as GRSE's statutory auditor for FY26-27, effective September 25, 2026.
TL;DR: GRSE's fundamentals are strong: Q1 profit grew about 44% and revenue about 39%, and the ₹2,896 crore Raichak shipyard plus the DNV and Damen partnerships should lift capacity and capabilities. The stock tells a weaker story, down 9.6% over a year and 7.3% over a month, below key support and moving averages, with technical signals pointing to bearish momentum. The higher-than-earmarked Raichak budget also adds execution and funding risk. A sustained recovery likely depends on new naval order wins and the stock retaking the ₹2,460–₹2,470 zone.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 756 | 898 | 923 | 1,016 | 1,010 | 1,153 | 1,271 | 1,642 | 1,310 | 1,677 | 1,896 | 2,119 | 1,815 |
| Expenses | 710 | 849 | 874 | 925 | 953 | 1,084 | 1,196 | 1,421 | 1,198 | 1,521 | 1,724 | 1,764 | 1,665 |
| Operating Profit | 46 | 49 | 49 | 91 | 56 | 69 | 75 | 221 | 112 | 156 | 172 | 355 | 149 |
| OPM % | 6% | 5% | 5% | 9% | 6% | 6% | 6% | 13% | 9% | 9% | 9% | 17% | 8% |
| Other Income | 71 | 72 | 82 | 76 | 74 | 75 | 72 | 114 | 73 | 69 | 62 | 71 | 100 |
| Interest | 5 | 2 | 1 | 3 | 4 | 2 | 2 | 1 | 6 | 4 | 4 | 3 | 4 |
| Depreciation | 10 | 10 | 10 | 10 | 10 | 11 | 11 | 10 | 12 | 12 | 12 | 13 | 14 |
| PBT | 102 | 107 | 119 | 153 | 115 | 131 | 134 | 324 | 167 | 209 | 218 | 411 | 232 |
| Tax % | 25% | 25% | 26% | 27% | 24% | 25% | 27% | 25% | 28% | 27% | 22% | 26% | 25% |
| Net Profit | 77 | 81 | 88 | 112 | 87 | 98 | 98 | 244 | 120 | 154 | 171 | 303 | 173 |
| EPS in Rs | 6.69 | 7.05 | 7.7 | 9.74 | 7.61 | 8.53 | 8.57 | 21.32 | 10.49 | 13.43 | 14.91 | 26.47 | 15.09 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,562 | 1,657 | 921 | 1,347 | 1,386 | 1,433 | 1,141 | 1,754 | 2,561 | 3,593 | 5,076 | 7,002 | 7,507 |
| Expenses | 1,500 | 1,565 | 1,082 | 1,362 | 1,344 | 1,391 | 1,060 | 1,613 | 2,412 | 3,357 | 4,654 | 6,207 | 6,674 |
| Operating Profit | 62 | 92 | -161 | -15 | 42 | 42 | 81 | 141 | 149 | 235 | 422 | 795 | 833 |
| OPM % | 4% | 6% | -17% | -1.1% | 3% | 2.9% | 7% | 8% | 6% | 7% | 8% | 11% | 11% |
| Other Income | 61 | 191 | 217 | 179 | 169 | 215 | 165 | 154 | 202 | 300 | 335 | 274 | 301 |
| Interest | 6 | 4 | 9 | 8 | 5 | 3 | 10 | 2 | 7 | 13 | 11 | 16 | 14 |
| Depreciation | 27 | 28 | 27 | 29 | 27 | 30 | 29 | 36 | 39 | 41 | 42 | 49 | 51 |
| PBT | 90 | 252 | 20 | 128 | 179 | 224 | 207 | 257 | 305 | 481 | 703 | 1,005 | 1,070 |
| Tax % | 43% | 35% | 43% | 28% | 39% | 27% | 26% | 26% | 25% | 26% | 25% | 26% | — |
| Net Profit | 52 | 164 | 11 | 92 | 110 | 163 | 153 | 190 | 228 | 357 | 527 | 748 | 801 |
| EPS in Rs | 41.77 | 133 | 9.26 | 8.07 | 9.6 | 14.27 | 13.4 | 16.55 | 19.91 | 31.19 | 46.04 | 65.29 | 69.9 |
| Div. Payout % | 48% | 15% | 472% | 55% | 72% | 50% | 37% | 35% | 31% | 30% | 30% | 27% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 124 | 124 | 124 | 115 | 115 | 115 | 115 | 115 | 115 | 115 | 115 | 115 |
| Reserves | 883 | 1,013 | 959 | 907 | 924 | 926 | 1,023 | 1,143 | 1,299 | 1,559 | 1,965 | 2,512 |
| Borrowings | 0 | 0 | 25 | 0 | 0 | 0 | 4 | 11 | 312 | 66 | 10 | 37 |
| Other Liabilities | 2,994 | 3,317 | 3,458 | 3,302 | 3,152 | 4,355 | 5,656 | 6,374 | 9,057 | 8,524 | 8,274 | 7,982 |
| Total Liabilities | 4,001 | 4,454 | 4,567 | 4,323 | 4,191 | 5,395 | 6,797 | 7,643 | 10,783 | 10,263 | 10,362 | 10,645 |
| Fixed Assets | 366 | 344 | 358 | 389 | 302 | 304 | 340 | 501 | 508 | 493 | 515 | 576 |
| CWIP | 11 | 22 | 23 | 16 | 34 | 52 | 151 | 10 | 6 | 25 | 28 | 24 |
| Investments | 0 | 0 | 0 | 0 | 2 | 54 | 826 | 197 | 234 | 0 | 0 | 0 |
| Other Assets | 3,624 | 4,088 | 4,185 | 3,918 | 3,852 | 4,986 | 5,480 | 6,936 | 10,036 | 9,746 | 9,819 | 10,045 |
| Total Assets | 4,001 | 4,454 | 4,567 | 4,323 | 4,191 | 5,395 | 6,797 | 7,643 | 10,783 | 10,263 | 10,362 | 10,645 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | — | -74 | -112 | 628 | 515 | -356 | 1,450 | -707 | 16 | -290 |
| Investing | — | — | — | 267 | 198 | 245 | -1,173 | 429 | -1,666 | 1,056 | 170 | 527 |
| Financing | — | — | — | -193 | -89 | -153 | -62 | -72 | 220 | -358 | -187 | -223 |
| Net Cash Flow | — | — | — | 0 | -3 | 720 | -720 | 0 | 4 | -9 | -1 | 13 |
| Free Cash Flow | — | — | — | -124 | -164 | 560 | 351 | -411 | 1,408 | -755 | -51 | -367 |
| CFO/OP | — | — | — | 748 | -564 | 1,200 | 701 | -204 | 1,023 | -248 | 45 | -4 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 37 | 34 | 79 | 55 | 58 | 136 | 57 | 31 | 7 | 20 | 19 | 64 |
| Inventory Days | 334 | 236 | 383 | 727 | 168 | 1,590 | 606 | 458 | 662 | 648 | 368 | 307 |
| Days Payable | 202 | 190 | 290 | 968 | 177 | 1,922 | 592 | 159 | 266 | 161 | 119 | 164 |
| Cash Conversion Cycle | 170 | 79 | 172 | -186 | 48 | -196 | 71 | 330 | 404 | 507 | 267 | 206 |
| Working Capital Days | -1,124 | -388 | -705 | -468 | -392 | -533 | -1,012 | -660 | -546 | -276 | -169 | -80 |
| ROCE % | 10% | 24% | 3% | 12% | 18% | 22% | 21% | 20% | 20% | 27% | 37% | 43% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY02–FY27.
Documents
Frequently Asked Questions about Garden Reach Shipbuilders
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Company Information
Garden Reach Shipbuilders & Engineers Ltd is a premier shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE is a diversified, profit making and the first Shipyard in the country to export warships and deliver 100 warships to the Indian Navy and Indian Coast Guard.[1]
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