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Garden Reach Shipbuilders & Engineers Ltd. (IN:GRSE)
:GRSE
India Market
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Garden Reach Shipbuilders & Engineers Ltd. (GRSE) AI Stock Analysis

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IN:GRSE

Garden Reach Shipbuilders & Engineers Ltd.

(GRSE)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
₹2,838.00
▲(16.54% Upside)
Action:Downgraded
Date:04/30/26
The score is anchored by strong technical momentum and robust revenue/earnings growth with improving ROE, but it is held back by weak and volatile cash generation and a relatively expensive valuation (high P/E with low yield).
Positive Factors
Revenue & Earnings Growth
Sustained multi-year revenue compounding and rising ROE (~28% in FY2026) indicate durable earnings power and improving capital efficiency. For a shipbuilder reliant on multi-year defence contracts, consistent top-line and ROE improvement signal expanding program wins and stronger profitability over the medium term.
Negative Factors
Weak Cash Conversion
Volatile and frequently negative operating and free cash flow undermines the translation of reported profits into spendable cash. For long-duration shipbuilding projects this raises working-capital and execution risk, increases reliance on balance-sheet flexibility, and can constrain reinvestment or dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Earnings Growth
Sustained multi-year revenue compounding and rising ROE (~28% in FY2026) indicate durable earnings power and improving capital efficiency. For a shipbuilder reliant on multi-year defence contracts, consistent top-line and ROE improvement signal expanding program wins and stronger profitability over the medium term.
Read all positive factors

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) vs. iShares MSCI India ETF (INDA)

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

Company Description
Garden Reach Shipbuilders & Engineers Limited (GRSE) is an Indian company primarily engaged in the fabrication of naval vessels. They provide a comprehensive range of maritime platforms to the Indian Navy, the Indian Coast Guard, and various other...
How the Company Makes Money
GRSE makes money mainly by executing shipbuilding and engineering contracts, with revenue recognized as it progresses on long-duration projects (and/or upon achieving contract milestones), rather than through recurring subscription-style income. I...

Garden Reach Shipbuilders & Engineers Ltd. Financial Statement Overview

Summary
Strong multi-year revenue and net income growth with ROE rising to ~28% and generally conservative leverage support a solid fundamental profile. However, repeated negative operating cash flow in recent years and inconsistent free cash flow materially weaken earnings quality and raise execution/working-capital risk.
Income Statement
83
Very Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue70.02B50.71B35.88B25.48B17.45B
Gross Profit8.98B10.51B8.11B6.17B5.46B
EBITDA10.70B7.56B5.34B3.51B2.94B
Net Income7.48B5.27B3.57B2.28B1.90B
Balance Sheet
Total Assets106.36B103.54B102.52B107.76B76.32B
Cash, Cash Equivalents and Short-Term Investments33.88B39.37B33.81B41.42B23.30B
Total Debt373.98M96.69M656.71M3.12B112.04M
Total Liabilities80.10B82.75B85.78B93.62B63.74B
Stockholders Equity26.26B20.79B16.73B14.14B12.58B
Cash Flow
Free Cash Flow-1.34B-514.69M-7.55B14.08B-4.11B
Operating Cash Flow-572.08M155.87M-7.07B14.50B-3.56B
Investing Cash Flow2.80B1.70B10.56B-16.66B4.29B
Financing Cash Flow-2.10B-1.87B-3.58B2.20B-724.89M

Garden Reach Shipbuilders & Engineers Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2435.25
Price Trends
50DMA
2739.27
Negative
100DMA
2595.96
Positive
200DMA
2573.41
Positive
Market Momentum
MACD
-8.69
Positive
RSI
46.17
Neutral
STOCH
13.67
Positive
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 2435.25 is below the 20-day moving average (MA) of 2730.77, below the 50-day MA of 2739.27, and below the 200-day MA of 2573.41, indicating a neutral trend. The MACD of -8.69 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.67 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₹3.01T33.070.90%6.80%8.98%
71
Outperform
₹976.22B35.360.47%13.77%14.39%
67
Neutral
₹304.93B40.770.80%37.95%41.82%
67
Neutral
₹3.03T50.020.60%16.16%13.86%
56
Neutral
₹492.97B117.220.33%-27.00%-23.51%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹373.05B52.060.59%4.19%-13.39%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:GRSE
Garden Reach Shipbuilders & Engineers Ltd.
2,661.95
12.90
0.49%
IN:BDL
Bharat Dynamics Ltd.
1,344.85
-471.30
-25.95%
IN:BEL
Bharat Electronics Limited
414.90
10.22
2.52%
IN:COCHINSHIP
Cochin Shipyard Limited
1,418.00
-499.99
-26.07%
IN:HAL
Hindustan Aeronautics Limited
4,506.55
-323.71
-6.70%
IN:MAZDOCK
Mazagon Dock Shipbuilders Ltd.
2,420.10
-675.09
-21.81%

Garden Reach Shipbuilders & Engineers Ltd. Corporate Events

Garden Reach Shipbuilders Reschedules FY26 Earnings Call to 12 May
May 7, 2026
Garden Reach Shipbuilders Engineers Ltd. has revised the schedule for its investors and analysts earnings conference call to discuss audited financial results for the quarter and year ended 31 March 2026. The call, originally set for 8 May 2026, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2026