Garden Reach Shipbuilders & Engineers Ltd. (IN:GRSE)
:GRSE
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Garden Reach Shipbuilders & Engineers Ltd.
(GRSE)
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Rating:62Neutral
Price Target:
₹3,025.00
▲(24.22% Upside)
Action:DowngradedDate:04/02/26
The score is driven by strong underlying financial performance (revenue/profit growth and improved margins) and a generally solid balance sheet, but it is weighed down by weak technical momentum (negative MACD and trading below key moving averages) and a demanding valuation (high P/E with low yield).
Positive Factors
Revenue & margin improvement
GRSE’s reported strong revenue growth and rising gross/EBIT margins indicate durable operational improvements. For a defense shipbuilder, expanding top-line with better margins signals improved project cost control, pricing power on complex contracts, and stronger long-term profitability and reinvestment capacity.
Negative Factors
Uneven cash generation
Volatility between profits and cash flow poses a structural risk for a business with long build cycles. Milestone-tied payments and receivable timing can force interim borrowing, strain working capital, and impair the company’s ability to self-fund capex or absorb delays, affecting execution reliability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin improvement
GRSE’s reported strong revenue growth and rising gross/EBIT margins indicate durable operational improvements. For a defense shipbuilder, expanding top-line with better margins signals improved project cost control, pricing power on complex contracts, and stronger long-term profitability and reinvestment capacity.
Read all positive factors
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹326.87B
Dividend Yield0.8%
Average Volume (3M)173.51K
Price to Earnings (P/E)41.0
Beta (1Y)2.70
Revenue Growth46.65%
EPS Growth74.54%
CountryIN
Employees1,573
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding114,552,000
10 Day Avg. Volume108,904
30 Day Avg. Volume173,512
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)9.32
Price to Sales (P/S)3.82
P/FCF Ratio-376.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹2,670.00Price Target Upside9.64% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 r...
How the Company Makes Money
GRSE primarily makes money by executing shipbuilding contracts, especially for defense customers. The company’s revenue is largely recognized from long-duration construction programs (e.g., warships and patrol vessels) where payments are typically...
Garden Reach Shipbuilders & Engineers Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.96B | 50.71B | 35.88B | 25.48B | 17.45B | 11.33B |
| Gross Profit | 11.49B | 10.51B | 8.11B | 6.17B | 5.46B | 5.20B |
| EBITDA | 8.92B | 7.56B | 5.34B | 3.51B | 2.94B | 2.37B |
| Net Income | 6.16B | 5.27B | 3.57B | 2.28B | 1.90B | 1.53B |
Balance Sheet | ||||||
| Total Assets | 109.84B | 103.54B | 102.52B | 107.76B | 76.32B | 67.83B |
| Cash, Cash Equivalents and Short-Term Investments | 31.57B | 39.37B | 33.81B | 41.42B | 23.30B | 28.08B |
| Total Debt | 319.74M | 96.69M | 656.71M | 3.12B | 112.04M | 36.93M |
| Total Liabilities | 86.88B | 82.75B | 85.78B | 93.62B | 63.74B | 56.46B |
| Stockholders Equity | 22.96B | 20.79B | 16.73B | 14.14B | 12.58B | 11.37B |
Cash Flow | ||||||
| Free Cash Flow | -6.44B | -514.69M | -7.55B | 14.08B | -4.11B | 3.51B |
| Operating Cash Flow | -6.05B | 155.87M | -7.07B | 14.50B | -3.56B | 5.15B |
| Investing Cash Flow | 6.75B | 1.70B | 10.56B | -16.66B | 4.29B | -11.73B |
| Financing Cash Flow | -671.97M | -1.87B | -3.58B | 2.20B | -724.89M | -624.48M |
Garden Reach Shipbuilders & Engineers Ltd. Technical Analysis
Positive
2435.25
Price Trends
2409.46
Positive
2446.88
Positive
2535.37
Positive
Market Momentum
66.75
Negative
66.34
Neutral
92.59
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 2348.53, above the 50-day MA of 2409.46, and below the 200-day MA of 2535.37, indicating a bullish trend. The MACD of 66.75 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹3.18T | 46.53 | ― | 0.60% | 14.46% | 19.48% | |
71 Outperform | ₹2.88T | 39.31 | ― | 0.90% | 2.48% | 2.30% | |
68 Neutral | ₹1.08T | 28.54 | ― | 0.47% | 8.53% | -12.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ₹326.87B | 40.98 | ― | 0.80% | 46.65% | 74.54% | |
59 Neutral | ₹510.60B | 184.29 | ― | 0.33% | 54.35% | 2.52% | |
58 Neutral | ₹442.50B | 73.64 | ― | 0.59% | 21.78% | -8.99% |
* Industrials Sector Average
IN:GRSE
Garden Reach Shipbuilders & Engineers Ltd.
2,875.30
931.60
47.93%
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Garden Reach Shipbuilders & Engineers Ltd. Corporate Events
GRSE Posts Record Turnover, Hikes Interim Dividend as Naval Deliveries Surge
Mar 31, 2026
Garden Reach Shipbuilders Engineers Ltd. reported its highest-ever provisional annual turnover of ₹6,400 crore for FY 2025–26, up from ₹5,076 crore a year earlier, and declared a sharply higher interim dividend equal to 129% of ...
GRSE Delivers Strong Q3 FY26 Performance With Robust Revenue and Profit Growth
Jan 29, 2026
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 sustai...
Garden Reach Shipbuilders & Engineers Declares Second Interim Dividend with Q3 FY26 Results
Jan 28, 2026
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. Alon...
GRSE Posts Q3 FY26 Unaudited Results, Announces Second Interim Dividend
Jan 28, 2026
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 aud...
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.