Garden Reach Shipbuilders & Engineers Ltd. (GRSE) AI Stock Analysis

• Market Cap: ₹316.82B
• Dividend Yield: 0.8%
• Average Volume (3M): 173.51K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 3.09
• Revenue Growth: 43.86%
• EPS Growth: 60.18%
• Country: IN
• Employees: 1,573
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 15.00
• Shares Outstanding: 114,552,000
• 10 Day Avg. Volume: 108,904
• 30 Day Avg. Volume: 173,512
• PEG Ratio: 0.77
• Price to Book (P/B): 9.32
• Price to Sales (P/S): 3.82
• P/FCF Ratio: -376.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹3,001.00 ▲(23.23% Upside)

The score is primarily supported by strong financial performance (rising revenue/profitability and a solid balance sheet), but is meaningfully constrained by expensive valuation (high P/E and low yield). Technicals remain in an uptrend, though overbought momentum signals increase short-term downside risk.

Positive Factors

Strong Revenue and EPS Growth

Sustained double‑digit revenue and very strong EPS growth reflect successful execution on multi‑year defense contracts and improved profitability. Over the next 2–6 months this indicates expanding order conversion and scale benefits that support reinvestment and competitive positioning in defense shipbuilding.

Improved Profit Margins

Rising gross and operating margins point to durable cost control and operational efficiency in shipbuilding and engineering. Margin expansion increases cash generation potential per project, makes bids more competitive on follow‑on contracts, and provides a buffer against input cost volatility over the medium term.

Solid Balance Sheet and Low Leverage

A strong equity base and moderate leverage enhance financial flexibility for large capital projects and working‑capital cycles inherent in long‑duration builds. This structural balance reduces refinancing risk, supports bidding on sizable defence orders, and underpins creditworthiness for suppliers and partners.

Negative Factors

Inconsistent Cash Flow Generation

Volatile operating and free cash flows are a structural concern given milestone‑linked payments on multi‑year contracts. Persistent cash conversion gaps can force external financing, raise funding costs, constrain timely capex or yard maintenance, and weaken resilience to project delays across the 2–6 month horizon.

Customer Concentration on Government Orders

High dependency on Ministry of Defence and other government customers concentrates revenue timing and political/budgetary risk. Delays, reprioritization, or procurement shifts can materially affect backlog conversion, yard utilization and revenue visibility over the medium term, pressuring margins and throughput.

Relatively High Total Liabilities

Elevated total liabilities increase liquidity and solvency risk if contract receipts are delayed. In a business with long receivable cycles and milestone billing, higher liabilities can elevate interest costs, restrict strategic spending, and amplify stress during project overruns or payment timing shifts over the coming months.

Garden Reach Shipbuilders & Engineers Ltd. Business Overview & Revenue Model

Company Description

Garden Reach Shipbuilders & Engineers Limited engages in the construction of war ships in India. The company offers frigates, anti-submarine warfare corvettes, missile corvettes, landing ship tanks, landing craft utilities, survey vessels, fleet replenishment tankers, fast patrol vessels, offshore patrol vessels, inshore patrol vessels, water jet fast attack craft, hovercrafts, and fast interceptor boats to the Indian Navy, Indian Coast Guard, and other governments. It also provides portable bridges, deck machinery items, marine pumps, anchor capstan, anchor windlass, mooring and dock capstan, general purpose davits, ammunition davit/ rocket launcher davit, electric boat and electro-hydraulic boat davits, electro-hydraulic deck cranes, survey motorboat and hydrographic davits, oceanographic winch, anchor cum general purpose winches for beaching operations, telescopic hangars, helo traversing systems, and various types of naval pumps. In addition, the company engages in the testing and overhauling of marine propulsion engines, as well as assembly of semi-knocked down units of diesel engines. Garden Reach Shipbuilders & Engineers Limited was incorporated in 1934 and is based in Kolkata, India.

How the Company Makes Money

GRSE generates revenue primarily through the construction and repair of naval and commercial vessels. The company receives contracts from the Indian Navy and other defense organizations, which constitute a significant portion of its income. Additionally, GRSE engages in the manufacturing of various marine equipment and components, which provides another revenue stream. The company also benefits from government initiatives aimed at boosting indigenous shipbuilding capabilities, resulting in partnerships and collaborations with other defense and maritime firms. Furthermore, GRSE explores opportunities in export markets, contributing to its earnings through international contracts.

Garden Reach Shipbuilders & Engineers Ltd. Financial Statement Overview

Summary

Strong income statement (revenue and profitability growth with improving margins) and a solid balance sheet (strong equity base and manageable leverage), partially offset by weaker cash-flow quality and variability versus reported profits.

Income Statement

Garden Reach Shipbuilders & Engineers Ltd. shows strong financial performance with a significant increase in revenue and profitability. The Gross Profit Margin has improved, indicating efficient cost management. The EBIT and EBITDA margins also reflect operational efficiency. The company displays a consistent revenue growth trajectory, with a notable increase in Net Profit Margin, suggesting effective cost controls and pricing strategies.

Balance Sheet

The company's balance sheet indicates a solid equity base, with a moderate Debt-to-Equity Ratio demonstrating low leverage. The Return on Equity is strong, reflecting high profitability relative to shareholder equity. The Equity Ratio suggests a stable financial structure. However, the relatively high total liabilities could pose a risk if not managed prudently.

Cash Flow

Cash flow analysis reveals a mixed picture with fluctuations in Free Cash Flow and Operating Cash Flow. While there has been a recovery from negative cash flows in prior years, indicating improved cash management, consistent positive cash flows are essential for sustainability. The Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio suggest that cash generation may need to align more closely with reported profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	53.76B	50.76B	35.93B	25.61B	17.54B	11.41B
Gross Profit	11.85B	10.57B	6.84B	1.95B	5.46B	1.38B
EBITDA	8.10B	7.56B	5.35B	3.51B	2.95B	2.39B
Net Income	5.60B	5.27B	3.57B	2.28B	1.90B	1.53B
Balance Sheet
Total Assets	0.00	103.54B	102.52B	107.76B	76.32B	67.83B
Cash, Cash Equivalents and Short-Term Investments	37.32B	39.37B	33.81B	41.42B	23.30B	28.08B
Total Debt	0.00	96.69M	656.71M	3.12B	112.04M	36.93M
Total Liabilities	-20.79B	82.75B	85.78B	93.62B	63.74B	56.46B
Stockholders Equity	20.79B	20.79B	16.73B	14.14B	12.58B	11.37B
Cash Flow
Free Cash Flow	0.00	-514.69M	-7.55B	14.08B	-4.11B	3.51B
Operating Cash Flow	0.00	155.87M	-7.07B	14.50B	-3.56B	5.15B
Investing Cash Flow	0.00	1.70B	10.56B	-16.66B	4.29B	-11.73B
Financing Cash Flow	0.00	-1.87B	-3.58B	2.20B	-724.89M	-624.48M

Garden Reach Shipbuilders & Engineers Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2435.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GRSE, the sentiment is Positive. The current price of 2435.25 is above the 20-day moving average (MA) of 2430.62, below the 50-day MA of 2469.55, and below the 200-day MA of 2564.55, indicating a bullish trend. The MACD of 17.31 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 92.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GRSE.

Garden Reach Shipbuilders & Engineers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEL	77 Outperform	₹3.28T	55.03	―	0.60%	16.58%	25.45%
HAL	71 Outperform	₹3.09T	36.46	―	0.90%	3.05%	-0.57%
MAZDOCK	68 Neutral	₹1.04T	44.47	―	0.47%	12.22%	-9.22%
GRSE	67 Neutral	₹316.82B	45.98	―	0.80%	43.86%	60.18%
COCHINSHIP	65 Neutral	₹436.67B	60.05	―	0.59%	19.62%	-12.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDL	61 Neutral	₹563.63B	97.19	―	0.33%	82.69%	18.17%

Garden Reach Shipbuilders & Engineers Ltd. Corporate Events

GRSE Delivers Strong Q3 FY26 Performance With Robust Revenue and Profit Growth

Garden Reach Shipbuilders & Engineers Ltd reported strong unaudited financial results for the third quarter of FY26, with total income rising 46% year-on-year to Rs 1,958 crore and revenue from operations up 49% to Rs 1,896 crore, reflecting sustained momentum in its order execution. Profitability improved sharply, as EBITDA climbed 59% to Rs 234 crore, profit before tax increased 63% to Rs 218 crore, and profit after tax jumped 74% to Rs 171 crore, driving earnings per share up to Rs 14.91 from Rs 8.57 a year earlier, underscoring GRSE’s consistent performance and strengthening financial profile for stakeholders.

Garden Reach Shipbuilders & Engineers Declares Second Interim Dividend with Q3 FY26 Results

Garden Reach Shipbuilders & Engineers Limited has reported its unaudited financial results for the quarter and nine months ended 31 December 2025, as reviewed by its statutory auditors and approved by the board of directors on 28 January 2026. Alongside the results, the board declared a second interim dividend of ₹7.15 per equity share of face value ₹10, aggregating to ₹81.90 crore for the financial year 2025-26, to be paid out of profits for the nine-month period, with 3 February 2026 set as the record date, underscoring continued shareholder payouts and capital return from current earnings.

GRSE Posts Q3 FY26 Unaudited Results, Announces Second Interim Dividend

Garden Reach Shipbuilders & Engineers Ltd. has reported its unaudited financial results for the quarter and nine months ended 31 December 2025 and obtained board approval of these numbers, supported by a limited review report from its statutory auditors. In conjunction with these results, the board has declared a second interim dividend of ₹7.15 per equity share (face value ₹10), aggregating to ₹81.90 crore out of profits for the nine months ended 31 December 2025, and set 3 February 2026 as the record date for determining shareholders eligible for this payout, underscoring continued profitability and shareholder returns in the current financial year 2025-26.

GRSE Promotes Aparajita Ghosh to Chief General Manager (Finance)

Garden Reach Shipbuilders & Engineers Ltd. has announced the promotion of Smt. Aparajita Ghosh from General Manager (Finance) to Chief General Manager (Finance), effective November 18, 2025. This change in senior management highlights the company’s commitment to leveraging experienced leadership for strategic decision-making and organizational growth, potentially impacting its financial operations and stakeholder relations positively.