Garden Reach Shipbuilders
Garden Reach Shipbuilders
Aerospace & DefenseKey Fundamentals
SmallcapEngineeringAerospace & DefenseTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
5- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 36.1% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 27.7%
- Company has been maintaining a healthy dividend payout of 29.1%
Weaknesses
3- Stock is trading at 10.6 times its book value
- Earnings include an other income of Rs.301 Cr.
- Debtor days have increased from 34.0 to 63.6 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2h agoGarden Reach Shipbuilders & Engineers (GRSE) is a defence PSU shipbuilder with a market cap of ₹27,228 Cr trading at a P/E of 34.9x and P/B of 10.6x. The company has delivered strong compounded profit growth of 50% CAGR over 3 years and 36% over 5 years with an almost debt-free balance sheet, while debtor days have nearly doubled from 34 to 63.6 days and other income of ₹301 Cr forms a notable portion of earnings.
- Almost debt-free balance sheet provides financial flexibility and insulates the company from rising interest rate cycles, keeping finance costs negligible
- Compounded profit growth of 50% CAGR over the last 3 years and 36% CAGR over 5 years reflects strong execution on its order book
- TTM sales growth of 40% and 3-year compounded sales CAGR of 40% indicate sustained top-line momentum driven by defence order deliveries
- Return on equity of 32% in the last year, with a 3-year average of 28% and 5-year average of 24%, demonstrates consistently high capital efficiency
- Stock has delivered a 3-year price CAGR of 45% and 5-year price CAGR of 66%, reflecting sustained investor interest in the defence manufacturing theme
- Healthy dividend payout ratio of 29.1% provides a degree of shareholder return even in a growth phase, with a current dividend yield of 0.53%
- TTM profit growth of 43% signals continued earnings acceleration in recent quarters, supporting near-term earnings visibility
- Stock trades at 10.6x book value, a steep premium that leaves limited margin of safety if execution slips or order inflows slow
- P/E of 34.9x is elevated for a public sector shipbuilder, pricing in significant future growth and leaving the stock vulnerable to any earnings miss
- Other income of ₹301 Cr is a material component of total profit, raising questions about the sustainability and quality of core operating earnings
- Debtor days have increased from 34.0 to 63.6 days, nearly doubling, which signals slower collections and potential working capital strain
- 1-year stock price return of -6% indicates recent underperformance despite strong fundamentals, suggesting the market may be repricing growth expectations
- Dividend yield of just 0.53% offers minimal income cushion for investors at current elevated valuations
- Defence shipbuilding revenues are inherently lumpy and dependent on government order timelines, creating quarter-to-quarter earnings volatility risk
- 10-year compounded sales and profit CAGR of 16% each suggest the recent acceleration may be cyclical rather than structural, and long-term base rates are materially lower
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- ₹2,670 cr capex expansion Aug 23
Defence Minister laid foundation for 3 new GRSE facilities in West Bengal — ₹2,500 cr for Raichak shipbuilding hub (200m dry dock, up to 60,000 DWT vessels), ₹100 cr for Shalimar dry dock restoration, and ₹70 cr for Kidderpore electric ferries and repairs.
- DNV & Damen strategic MoUs Sep 3
GRSE signed MoUs at SMM Hamburg with DNV for advanced warships, green shipping and AI-driven shipbuilding, and with Damen for design and construction of advanced dredgers in India. Shares rose 1.5% to ₹2,531.8 on the news.
- AGM and ₹6.70 final dividend Sep 1
GRSE schedules its 110th AGM for September 25, 2026 with board recommending a final dividend of ₹6.70 per equity share for FY26.
- ₹45 cr contract secured Aug 24
GRSE secured a modest ₹45 crore contract adding to its existing order book, with no further details on scope or client disclosed.
TL;DR: GRSE is on a clear expansion trajectory, committing ₹2,670 crore in capex to significantly scale shipbuilding capacity while forging international tech partnerships with DNV and Damen. The stock is up over 7% YTD with no visible headwinds in recent news flow. The MoUs currently carry no financial implications, and the ₹45 cr contract is relatively small, so near-term revenue impact from these announcements is limited. The forward outlook is constructive as expanded facilities and tech collaborations position GRSE for larger defence and commercial orders over the medium term.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 756 | 898 | 923 | 1,016 | 1,010 | 1,153 | 1,271 | 1,642 | 1,310 | 1,677 | 1,896 | 2,119 | 1,815 |
| Expenses | 710 | 849 | 874 | 925 | 953 | 1,084 | 1,196 | 1,421 | 1,198 | 1,521 | 1,724 | 1,764 | 1,665 |
| Operating Profit | 46 | 49 | 49 | 91 | 56 | 69 | 75 | 221 | 112 | 156 | 172 | 355 | 149 |
| OPM % | 6% | 5% | 5% | 9% | 6% | 6% | 6% | 13% | 9% | 9% | 9% | 17% | 8% |
| Other Income | 71 | 72 | 82 | 76 | 74 | 75 | 72 | 114 | 73 | 69 | 62 | 71 | 100 |
| Interest | 5 | 2 | 1 | 3 | 4 | 2 | 2 | 1 | 6 | 4 | 4 | 3 | 4 |
| Depreciation | 10 | 10 | 10 | 10 | 10 | 11 | 11 | 10 | 12 | 12 | 12 | 13 | 14 |
| PBT | 102 | 107 | 119 | 153 | 115 | 131 | 134 | 324 | 167 | 209 | 218 | 411 | 232 |
| Tax % | 25% | 25% | 26% | 27% | 24% | 25% | 27% | 25% | 28% | 27% | 22% | 26% | 25% |
| Net Profit | 77 | 81 | 88 | 112 | 87 | 98 | 98 | 244 | 120 | 154 | 171 | 303 | 173 |
| EPS in Rs | 6.69 | 7.05 | 7.7 | 9.74 | 7.61 | 8.53 | 8.57 | 21.32 | 10.49 | 13.43 | 14.91 | 26.47 | 15.09 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,562 | 1,657 | 921 | 1,347 | 1,386 | 1,433 | 1,141 | 1,754 | 2,561 | 3,593 | 5,076 | 7,002 | 7,507 |
| 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 | 6,674 |
| Operating Profit | 62 | 92 | -161 | -15 | 42 | 42 | 81 | 141 | 149 | 235 | 422 | 795 | 833 |
| OPM % | 4% | 6% | -17% | -1.1% | 3% | 2.9% | 7% | 8% | 6% | 7% | 8% | 11% | 11% |
| Other Income | 61 | 191 | 217 | 179 | 169 | 215 | 165 | 154 | 202 | 300 | 335 | 274 | 301 |
| Interest | 6 | 4 | 9 | 8 | 5 | 3 | 10 | 2 | 7 | 13 | 11 | 16 | 14 |
| Depreciation | 27 | 28 | 27 | 29 | 27 | 30 | 29 | 36 | 39 | 41 | 42 | 49 | 51 |
| PBT | 90 | 252 | 20 | 128 | 179 | 224 | 207 | 257 | 305 | 481 | 703 | 1,005 | 1,070 |
| 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 | 801 |
| 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 | 69.9 |
| Div. Payout % | 48% | 15% | 472% | 55% | 72% | 50% | 37% | 35% | 31% | 30% | 30% | 27% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 7,982 |
| Total Liabilities | 4,001 | 4,454 | 4,567 | 4,323 | 4,191 | 5,395 | 6,797 | 7,643 | 10,783 | 10,263 | 10,362 | 10,645 |
| Fixed Assets | 366 | 344 | 358 | 389 | 302 | 304 | 340 | 501 | 508 | 493 | 515 | 576 |
| CWIP | 11 | 22 | 23 | 16 | 34 | 52 | 151 | 10 | 6 | 25 | 28 | 24 |
| 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 | 10,045 |
| Total Assets | 4,001 | 4,454 | 4,567 | 4,323 | 4,191 | 5,395 | 6,797 | 7,643 | 10,783 | 10,263 | 10,362 | 10,645 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 307 |
| 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 | 206 |
| Working Capital Days | -1,124 | -388 | -705 | -468 | -392 | -533 | -1,012 | -660 | -546 | -276 | -169 | -80 |
| ROCE % | 10% | 24% | 3% | 12% | 18% | 22% | 21% | 20% | 20% | 27% | 37% | 43% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY02–FY26.
Documents
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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]
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