Garden Reach Shipbuilders & Engineers Ltd logo

Garden Reach Shipbuilders & Engineers Ltd

GRSE NSE

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]

AI Verdict: HOLD Confidence: 5%

GRSE delivers exceptional profit growth of 36.2% CAGR over 5 years and 28% 3-year ROE, but trades at a steep 43.3x PE and 12.32x book value. The stock has corrected 15% over the past year, suggesting the market is repricing growth expectations despite strong order book tailwinds from India's naval modernization.

Key Fundamentals

SmallcapEngineeringAerospace & Defense
Market Cap
₹31,845 Cr
Volatility
Moderate
P/E Ratio
41.73
EBITDA
₹795 Cr
Return on Equity
16.14%
Debt to Equity
0.02
Book Value
₹229.25
EPS
₹32.11
52W High
₹3,524
52W Low
₹1,963.7

Technical Indicators

Key Insights

Strengths

5
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 36.2% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 27.9%
  • Company has been maintaining a healthy dividend payout of 30.0%

Weaknesses

3
  • Stock is trading at 12.1 times its book value
  • Earnings include an other income of Rs.274 Cr.
  • Debtor days have increased from 34.0 to 63.6 days.

Growth Rate

Revenue Growth
29.42% ↗
Net Income Growth
41.62% ↘
Cash Flow Change
102.21% ↗
ROE
18.78% ↗
ROCE
18.02% ↗
EBITDA Margin (Avg.)
-21.76% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

GRSE delivers exceptional profit growth of 36.2% CAGR over 5 years and 28% 3-year ROE, but trades at a steep 43.3x PE and 12.32x book value. The stock has corrected 15% over the past year, suggesting the market is repricing growth expectations despite strong order book tailwinds from India's naval modernization.

Bull Case 8
  • Compounded profit growth of 50% CAGR over 3 years demonstrates strong earnings momentum
  • Company is almost debt-free, providing financial flexibility for capacity expansion and order execution
  • ROE of 32% in the last year is best-in-class for a public sector defence shipbuilder
  • TTM revenue growth of 38% indicates robust order execution and accelerating delivery schedule
  • 5-year compounded sales CAGR of 44% reflects sustained top-line expansion driven by defence orders
  • Healthy dividend payout ratio of 30% provides income support with 0.46% yield despite growth phase
  • 3-year ROE of 28% and 5-year ROE of 24% show consistently improving capital efficiency
  • 33% of analysts rate it a Buy, reflecting confidence in long-term defence sector tailwinds
Bear Case 8
  • PE of 43.3x is expensive for a capital goods company, pricing in several years of growth
  • Price-to-book of 12.32x is extremely elevated, leaving little margin of safety for investors
  • Stock has declined 15% over 1 year, indicating negative momentum and possible de-rating cycle
  • Debtor days increased from 34 to 63.6 days, signaling deteriorating working capital efficiency and potential collection issues
  • Other income of Rs.274 Cr inflates earnings quality — core operating profit may be lower than headline numbers suggest
  • 50% of analysts rate it a Hold and 16.67% rate it a Sell, suggesting limited near-term upside consensus
  • Market cap of Rs.32,386 Cr demands sustained 35%+ earnings growth to justify current valuation multiples
  • Public sector undertaking status may limit operational agility and margin expansion compared to private peers

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 1
  • BSE fine for board non-compliance May 29

    BSE imposed a ₹9.56 lakh fine on GRSE for lacking independent directors and key committees in Q4 FY26. The company attributed the lapse to delays in government appointments.

Positives 3
  • Navratna status granted by Govt Jun 20

    GRSE was accorded Navratna status on June 19, 2026, recognizing its financial performance and operational efficiency. This elevates the company's autonomy in investment and operational decisions.

  • Strong Q4 FY26 financial results Jun 10

    Standalone net profit surged 24.1% YoY to ₹303.20 crore and revenue from operations jumped 29.1% YoY to ₹2,119.21 crore in Q4 FY26.

  • L1 bidder for ₹40 Cr tug order Jun 23

    GRSE emerged as the L1 bidder for a ₹40 crore order from Shyama Prasad Mukherjee Port, Kolkata for a 15 TON Electric Bollard Pull Tug.

Neutral 2
  • New govt nominee director appointed Jun 5

    Dr Vijay Namdeorao Zade, Joint Secretary (Naval Systems), replaced Shri Dinesh Mahur as Part-Time Official Director on GRSE's board effective June 5, 2026.

  • Senior technical leadership appointments May 27

    GRSE appointed Cmde Sreekumar Srinivasan as CGM (Technical) on May 27 and Cmde A Vinith as ED (Technical) on May 26, 2026, strengthening its technical leadership team.

TL;DR: GRSE is on a strong trajectory — Navratna status recognition and robust Q4 FY26 earnings (24% profit growth, 29% revenue growth) confirm operational momentum. The minor BSE fine for board composition is a governance hiccup rather than a structural concern, and is already being addressed with new director appointments. Order flow continues with a ₹40 Cr tug bid. The trend is clearly improving, with the key risk being continued dependence on government timelines for board compliance and order execution.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
601
756
898
923
1,016
1,010
1,153
1,271
1,642
1,310
1,677
1,896
2,119
Expenses
581
710
849
874
925
953
1,084
1,196
1,421
1,198
1,521
1,724
1,764
Operating Profit
20
46
49
49
91
56
69
75
221
112
156
172
355
OPM %
3%
6%
5%
5%
9%
6%
6%
6%
13%
9%
9%
9%
17%
Other Income
70
71
72
82
76
74
75
72
114
73
69
62
71
Interest
4
5
2
1
3
4
2
2
1
6
4
4
3
Depreciation
10
10
10
10
10
10
11
11
10
12
12
12
13
PBT
76
102
107
119
153
115
131
134
324
167
209
218
411
Tax %
28%
25%
25%
26%
27%
24%
25%
27%
25%
28%
27%
22%
26%
Net Profit
55
77
81
88
112
87
98
98
244
120
154
171
303
EPS in Rs
4.83
6.69
7.05
7.7
9.74
7.61
8.53
8.57
21.32
10.49
13.43
14.91
26.47
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,562
1,657
921
1,347
1,386
1,433
1,141
1,754
2,561
3,593
5,076
7,002
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
Operating Profit
62
92
-161
-15
42
42
81
141
149
235
422
795
OPM %
4%
6%
-17%
-1%
3%
3%
7%
8%
6%
7%
8%
11%
Other Income
61
191
217
179
169
215
165
154
202
300
335
274
Interest
6
4
9
8
5
3
10
2
7
13
11
16
Depreciation
27
28
27
29
27
30
29
36
39
41
42
49
PBT
90
252
20
128
179
224
207
257
305
481
703
1,005
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
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
Div. Payout %
48%
15%
472%
55%
72%
50%
37%
35%
31%
30%
30%
30%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
7,973
Total Liabilities
4,001
4,454
4,567
4,323
4,191
5,395
6,797
7,643
10,783
10,263
10,362
10,636
Fixed Assets
366
344
358
389
302
304
340
501
508
493
515
584
CWIP
11
22
23
16
34
52
151
10
6
25
28
16
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
10,036
Total Assets
4,001
4,454
4,567
4,323
4,191
5,395
6,797
7,643
10,783
10,263
10,362
10,636
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
306
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
205
Working Capital Days
-1,124
-388
-705
-468
-392
-533
-1,012
-660
-546
-276
-169
-81
ROCE %
10%
24%
3%
12%
18%
22%
21%
20%
20%
27%
37%
43%

Shareholding Pattern

As of Mar 2026
Promoters 74.50%
Public 17.85%
FIIs 3.51%
Others 2.45%
DIIs 1.69%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
74.50%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
3.34%
0.00%
3.26%
3.91%
3.65%
3.70%
3.84%
5.33%
3.26%
2.96%
3.51%
DIIs
15.61%
13.11%
12.71%
11.26%
10.67%
9.16%
8.35%
7.55%
6.98%
7.47%
5.96%
5.27%
6.14%
3.20%
1.87%
1.87%
1.90%
1.82%
1.99%
1.64%
1.69%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
6.75%
8.57%
8.90%
9.64%
9.87%
10.06%
10.42%
10.84%
10.51%
10.99%
12.50%
12.84%
12.63%
15.35%
17.82%
18.04%
17.96%
16.22%
17.90%
18.36%
17.85%
Others
3.14%
3.82%
3.88%
4.60%
4.95%
6.28%
6.72%
7.11%
8.01%
7.04%
3.70%
7.39%
3.47%
3.04%
2.17%
1.89%
1.80%
2.13%
2.35%
2.54%
2.45%
No. of Shareholders
29,026
34,322
34,618
35,586
35,806
37,518
41,460
60,048
60,638
68,859
1,08,922
1,17,621
1,25,631
2,59,827
4,04,157
4,21,148
4,13,986
4,07,707
4,25,900
4,19,648
4,07,526

Documents

Frequently Asked Questions about Garden Reach Shipbuilders & Engineers Ltd

What does Garden Reach Shipbuilders & Engineers Ltd do?
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 S...
Where is Garden Reach Shipbuilders & Engineers Ltd (GRSE) listed?
Garden Reach Shipbuilders & Engineers Ltd is listed on the Indian stock exchanges. It is listed on NSE: GRSE and BSE: 542011. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Garden Reach Shipbuilders & Engineers Ltd belong to?
Garden Reach Shipbuilders & Engineers Ltd operates in the Industrials sector within the Aerospace & Defense industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd has a market capitalisation of approximately ₹31845.46 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Garden Reach Shipbuilders & Engineers Ltd?
The Price-to-Earnings (PE) ratio of Garden Reach Shipbuilders & Engineers Ltd is 41.73. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Garden Reach Shipbuilders & Engineers Ltd?
Over the past 52 weeks, Garden Reach Shipbuilders & Engineers Ltd has traded between a low of ₹1,963.7 and a high of ₹3,524. This range helps investors understand the stock's price volatility and recent trading levels.
Does Garden Reach Shipbuilders & Engineers Ltd pay dividends?
Yes, Garden Reach Shipbuilders & Engineers Ltd has a dividend yield of 0.46%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd has a Return on Equity (ROE) of 16.14%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Garden Reach Shipbuilders & Engineers Ltd on Tapetide?
On Tapetide, you can view Garden Reach Shipbuilders & Engineers Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

Website grse.in
CEO Commodore P. R. Hari IN (Retd)
Employees 1,523
Listed 2018-10-10
Face Value ₹ 10
Issued Size 11,45,52,000

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