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

• Market Cap: ₹302.10B
• Dividend Yield: 0.54%
• Average Volume (3M): 173.51K
• Price to Earnings (P/E): 53.1
• Beta (1Y): 2.71
• Revenue Growth: 39.76%
• EPS Growth: 52.37%
• Country: IN
• Employees: 1,573
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 10.50
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ₹2,768.00 ▲(7.89% Upside)

Garden Reach Shipbuilders & Engineers Ltd. exhibits strong financial performance with robust revenue and profit growth, which is the most significant factor in its overall score. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals, contributing to a moderate overall stock score.

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

Garden Reach Shipbuilders & Engineers Ltd. demonstrates strong financial health with robust revenue and profit growth, supported by efficient cost management and operational efficiency. The balance sheet reflects a strong equity position with manageable debt levels. However, cash flow management shows room for improvement to ensure sustained financial stability.

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: Neutral
• Last Price: 2565.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GRSE, the sentiment is Neutral. The current price of 2565.55 is below the 20-day moving average (MA) of 2631.94, above the 50-day MA of 2564.59, and above the 200-day MA of 2226.62, indicating a neutral trend. The MACD of -2.33 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
HAL	―	₹3.26T	39.27	―	0.85%	2.07%	0.81%
BEL	―	₹3.02T	54.87	―	0.59%	14.23%	29.82%
MAZDOCK	―	₹1.14T	52.38	―	0.62%	12.22%	-9.22%
GRSE	―	₹302.10B	53.10	―	0.54%	39.76%	52.37%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDL	―	₹564.60B	100.68	―	0.30%	50.34%	-3.00%
COCHINSHIP	―	₹471.27B	56.04	―	0.66%	24.03%	-2.11%

Garden Reach Shipbuilders & Engineers Ltd. Corporate Events

Garden Reach Shipbuilders Ensures Regulatory Compliance with SEBI Certificate Submission

Garden Reach Shipbuilders & Engineers Ltd. submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period from July 1, 2025, to September 30, 2025. This submission, received from their Registrar and Share Transfer Agent, M/s. Alankit Assignments Limited, ensures adherence to regulatory requirements, reflecting the company’s commitment to maintaining transparency and regulatory compliance, which is crucial for its operations and stakeholder trust.

GRSE Discusses Q1 FY26 Financial Results in Investor Call

Garden Reach Shipbuilders & Engineers Ltd. held an investor and analyst conference call to discuss its unaudited financial results for the first quarter of fiscal year 2026. The call, which took place on August 19, 2025, provided insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.