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Garden Reach Ship Overview

1. Business Overview

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is one of India's premier public sector shipbuilding companies, primarily engaged in the design, construction, and repair of warships, auxiliary vessels, and other specialized vessels for the Indian Navy and Indian Coast Guard. Its core business model revolves around securing and executing large, complex, and long-term contracts from the Ministry of Defence. The company also undertakes general engineering activities, including the manufacture of deck machinery items, pre-fabricated steel bridges, and marine pumps. GRSE makes money through revenue generated from the delivery of vessels and engineering products, project milestones, and repair services.

2. Key Segments / Revenue Mix

GRSE's revenue is overwhelmingly dominated by its Shipbuilding segment, which includes the construction of various types of naval warships (frigates, corvettes, ASW shallow water craft, survey vessels), Coast Guard offshore patrol vessels, and other specialized vessels like landing craft utilities. While specific percentage breakdowns are not publicly detailed for routine reporting, shipbuilding forms the vast majority of its top-line. A smaller portion comes from Ship Repair and General Engineering (e.g., manufacture of marine engines, deck machinery, pre-fabricated bridges), which provide diversification but are secondary to its core shipbuilding activities.

3. Industry & Positioning

GRSE operates in the highly strategic and capital-intensive Indian defense shipbuilding industry. This industry is characterized by high barriers to entry due to the specialized technology, massive infrastructure requirements, long project cycles, and stringent defense clearances. The industry structure is largely an oligopoly dominated by a few public sector undertakings (PSUs) like Mazagon Dock Shipbuilders, Cochin Shipyard, and GRSE, alongside a few private players such as Larsen & Toubro. GRSE is positioned as a key national shipbuilder, particularly noted for its capability in building smaller to medium-sized sophisticated warships and auxiliary vessels. It has a strong track record of indigenization and plays a crucial role in strengthening India's naval capabilities.

4. Competitive Advantage (Moat)

Government Ownership & Strategic Importance: As a Public Sector Undertaking (PSU) under the Ministry of Defence, GRSE benefits from preferred supplier status and a strong relationship with its primary customers, the Indian Navy and Coast Guard. This provides a consistent pipeline of large, strategic orders.

High Barriers to Entry: The immense capital investment, specialized technical expertise, long lead times, and rigorous certifications required to build complex naval vessels create a significant hurdle for new entrants.

Established Track Record & Expertise: Decades of experience in designing and building a diverse range of naval platforms for the Indian armed forces provides GRSE with unparalleled domain knowledge and operational experience.

Indigenization Focus: GRSE's capabilities in indigenous design and manufacturing align with the "Make in India" and "Atmanirbhar Bharat" defense initiatives, giving it a structural advantage in securing domestic contracts.

5. Growth Drivers

Indian Navy Modernization & Fleet Expansion: The Indian Navy's continuous drive to expand, modernize, and replace its aging fleet, along with the government's focus on bolstering maritime security, will fuel substantial order inflows.

"Make in India" / Atmanirbhar Bharat in Defence: Government policy promoting indigenous defense manufacturing directly benefits GRSE by prioritizing domestic shipyards for new orders and reducing reliance on imports.

Coastal Security Enhancements: Increased focus on strengthening the Indian Coast Guard's capabilities to protect India's vast coastline provides opportunities for new vessel orders.

Export Potential: Growing interest from friendly foreign navies for cost-effective and proven Indian-built naval platforms offers an avenue for export growth, leveraging GRSE's established capabilities.

Technology Upgrades: The need for more advanced and specialized vessels, including autonomous and unmanned platforms, will drive demand for GRSE's evolving technical expertise.

6. Risks

Customer Concentration: GRSE is heavily reliant on orders from the Indian Navy and Coast Guard. Any significant shifts in defense policy, budget cuts, or project delays by the Ministry of Defence can directly and substantially impact revenue and profitability.

Project Execution & Cost Overruns: Shipbuilding projects are complex, long-term endeavors with inherent risks of technical challenges, delays, and cost escalations (e.g., due to material price volatility), which can erode profit margins.

Competition: While PSUs are favored, there is increasing competition from other public and private sector shipyards for new defense contracts.

Regulatory & Political Risks: As a PSU in a strategic sector, GRSE is subject to government policy changes, bureaucratic delays, and political influence, which can impact strategic decisions and project timelines.

Input Cost Volatility: Fluctuations in prices of key raw materials like steel and specialized components, as well as imported equipment, can affect project costs and profitability, especially for fixed-price contracts.

7. Management & Ownership

GRSE is a Public Sector Undertaking (PSU), with the Government of India, primarily through the Ministry of Defence, being the promoter and majority shareholder. Its management typically comprises individuals appointed by the Government, often with extensive experience in defense, engineering, or public administration. The management's focus is on executing government contracts, achieving strategic national objectives like indigenization, and maintaining operational efficiency. Decisions and strategic direction are often aligned with broader government defense policies and initiatives.

8. Outlook

GRSE's outlook is fundamentally linked to India's strategic defense priorities and naval expansion plans. The company is well-positioned to benefit from the government's persistent emphasis on "Make in India" for defense and the continuous modernization of the Indian Navy and Coast Guard, ensuring a robust order book for the foreseeable future. Its strong technical capabilities and established track record in building complex naval vessels offer a solid foundation for growth.

However, the inherent risks associated with long-gestation projects, potential for cost overruns, and the concentrated customer base remain significant factors. The company's performance will be sensitive to government budgetary allocations for defense and any policy shifts. While export opportunities present a new growth avenue, success will depend on competitive pricing and global geopolitical dynamics. Overall, GRSE is set for steady demand driven by national security imperatives, but its profitability and efficiency will be tested by project execution challenges and competitive pressures within the strategic shipbuilding sector.

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Garden Reach Ship Key Financials

Market Cap ₹29574 Cr.

Stock P/E 56.1

P/B 11.3

Current Price ₹2581.7

Book Value ₹ 229.3

Face Value 10

52W High ₹3535

Dividend Yield 0.76%

52W Low ₹ 1965

Garden Reach Ship Share Price

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Volume
Price

Garden Reach Ship Quarterly Price

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Garden Reach Ship Peer Comparison

Garden Reach Ship Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Net Sales 923 1016 1010 1153 1271 1642 1310 1677 1896 2119
Other Income 82 76 74 75 72 114 73 69 62 71
Total Income 1005 1092 1084 1228 1343 1756 1382 1746 1958 2190
Total Expenditure 874 925 953 1084 1195 1421 1198 1521 1724 1764
Operating Profit 130 166 130 144 147 335 184 225 234 426
Interest 1 3 4 2 2 1 6 4 4 3
Depreciation 10 10 10 11 11 10 12 12 12 13
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 119 153 115 131 134 324 167 209 218 411
Provision for Tax 30 41 28 33 36 79 47 56 47 108
Profit After Tax 88 112 87 98 98 244 120 154 171 303
Adjustments 0 0 -0 0 0 0 -0 0 0 0
Profit After Adjustments 88 112 87 98 98 244 120 154 171 303
Adjusted Earnings Per Share 7.7 9.7 7.6 8.5 8.6 21.3 10.5 13.4 14.9 26.5

Garden Reach Ship Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 2304 1655 922 1348 1386 1433 1141 1754 2561 3593 5076 7002
Other Income 69 185 217 183 171 225 186 161 202 300 335 275
Total Income 2374 1840 1139 1531 1558 1659 1327 1916 2763 3892 5411 7276
Total Expenditure 2284 1575 1083 1367 1344 1391 1060 1613 2408 3354 4649 6207
Operating Profit 90 266 56 164 213 267 267 302 355 539 762 1069
Interest 2 4 9 8 5 3 10 2 10 16 16 17
Depreciation 27 28 27 29 27 30 29 36 39 41 42 49
Exceptional Income / Expenses 15 16 0 0 -2 -11 -21 -8 0 0 0 0
Profit Before Tax 76 249 20 128 179 224 207 257 305 481 703 1005
Provision for Tax 33 87 9 35 69 60 54 68 77 124 176 258
Profit After Tax 43 162 11 92 110 163 153 190 228 357 527 748
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 43 162 11 92 110 163 153 190 228 357 527 748
Adjusted Earnings Per Share 3.5 13.1 0.9 8.1 9.6 14.3 13.4 16.5 19.9 31.2 46 65.3

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 41% 43% 29% 8%
Operating Profit CAGR 41% 36% 23% 24%
PAT CAGR 48% 41% 26% 28%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 4% 71% 71% NA%
ROE Average 28% 23% 20% 14%
ROCE Average 38% 29% 26% 20%

Garden Reach Ship Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 968 1134 1083 1022 1038 1040 1137 1258 1414 1673 2079
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 22 0 25 0 0 0 0 0 0 0 0
Other Non-Current Liabilities 166 33 37 80 83 275 238 321 224 349 320
Total Current Liabilities 6358 3284 3421 3217 3068 4247 5548 6256 9241 8456 8149
Total Liabilities 7513 4451 4567 4319 4190 5562 6924 7835 10878 10479 10549
Fixed Assets 366 344 358 389 302 304 340 501 508 493 515
Other Non-Current Assets 248 1280 920 1420 316 451 1106 1508 405 541 509
Total Current Assets 6900 2828 3288 2510 3571 4807 5477 5826 9966 9446 9524
Total Assets 7513 4451 4567 4319 4190 5562 6924 7835 10878 10479 10549

Garden Reach Ship Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 17 116 26 12 12 9 729 9 10 14 5
Cash Flow from Operating Activities 107 423 -191 -74 -112 628 515 -356 1450 -707 16
Cash Flow from Investing Activities 10 -483 227 267 198 245 -1173 429 -1666 1056 170
Cash Flow from Financing Activities -18 -30 -50 -193 -89 -153 -62 -72 220 -358 -187
Net Cash Inflow / Outflow 99 -90 -14 0 -3 720 -720 0 4 -9 -1
Closing Cash & Cash Equivalent 116 26 12 12 9 729 9 10 14 5 4

Garden Reach Ship Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 3.51 13.09 0.93 8.07 9.6 14.27 13.4 16.55 19.91 31.19 46.04
CEPS(Rs) 5.7 15.33 3.08 10.59 11.96 16.9 15.94 19.66 23.33 34.8 49.75
DPS(Rs) 2 4.3 4.37 4.44 6.95 7.14 5 5.8 6.2 9.36 13.85
Book NAV/Share(Rs) 78.14 91.59 87.46 89.18 90.64 90.81 99.27 109.81 123.42 146.09 181.51
Core EBITDA Margin(%) 0.89 4.87 -17.34 -1.39 3.04 2.93 7.13 8.05 5.97 6.65 8.41
EBIT Margin(%) 3.36 15.26 3.15 10.04 13.28 15.82 19.04 14.77 12.32 13.84 14.17
Pre Tax Margin(%) 3.29 14.99 2.16 9.47 12.91 15.62 18.15 14.66 11.92 13.39 13.86
PAT Margin (%) 1.88 9.75 1.23 6.85 7.93 11.41 13.45 10.8 8.91 9.94 10.39
Cash Profit Margin (%) 3.05 11.42 4.1 8.99 9.88 13.51 16 12.84 10.44 11.09 11.23
ROA(%) 0.62 2.71 0.25 2.08 2.58 3.35 2.46 2.57 2.44 3.35 5.02
ROE(%) 4.52 15.42 1.03 8.78 10.67 15.73 14.1 15.83 17.08 23.14 28.11
ROCE(%) 7.89 23.87 2.61 12.72 17.87 21.82 19.95 21.63 21.23 28.88 37.77
Receivable days 15.66 33.55 69.26 54.21 55.54 96.15 114.13 34.27 14.41 12.45 16.31
Inventory Days 774.34 572.67 223.96 135.08 113.56 100.67 196.59 203.9 291.5 350.66 270.99
Payable days 100.72 194.13 353.76 742.68 1373.87 1611.23 1279.93 1227.57 485.42 783.83 750.8
PER(x) 0 0 0 0 10.15 9.6 13.81 13.68 22.87 24.53 36.59
Price/Book(x) 0 0 0 0 1.08 1.51 1.86 2.06 3.69 5.24 9.28
Dividend Yield(%) 0 0 0 0 7.13 5.21 2.7 2.56 1.36 1.22 0.82
EV/Net Sales(x) -0.8 -0.7 -1.6 -0.67 -0.63 -0.73 -0.14 0.02 0.46 1.42 3.07
EV/Core EBITDA(x) -20.4 -4.36 -26.33 -5.52 -4.09 -3.9 -0.61 0.12 3.36 9.47 20.43
Net Sales Growth(%) 650.2 -28.16 -44.32 46.21 2.87 3.38 -20.4 53.79 45.98 40.27 41.28
EBIT Growth(%) -59.44 226.22 -88.47 363.25 35.91 23.18 -4.21 19.27 21.83 57.54 44.63
PAT Growth(%) -64.23 272.93 -92.92 705.96 18.98 48.7 -6.12 23.49 20.37 56.61 47.62
EPS Growth(%) -64.23 272.93 -92.92 771.31 18.98 48.7 -6.12 23.49 20.37 56.61 47.62
Debt/Equity(x) 0.02 0 0.02 0 0 0 0 0 0.21 0.03 0
Current Ratio(x) 1.09 0.86 0.96 0.78 1.16 1.13 0.99 0.93 1.08 1.12 1.17
Quick Ratio(x) 0.37 0.66 0.82 0.62 1.05 1.03 0.85 0.74 0.76 0.65 0.73
Interest Cover(x) 45.68 57.64 3.21 17.61 36 78.82 21.52 141.55 30.34 30.47 45.34
Total Debt/Mcap(x) 0 0 0 0 0 0 0 0 0.06 0.01 0

Garden Reach Ship Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 74.5 74.5 74.5 74.5 74.5 74.5 74.5 74.5 74.5 74.5
FII 2.87 3.26 3.91 3.65 3.7 3.84 5.33 3.26 2.96 3.51
DII 6.03 6.14 3.2 1.87 1.87 1.9 1.81 1.99 1.64 1.69
Public 16.6 16.1 18.39 19.98 19.93 19.76 18.36 20.25 20.9 20.31
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Garden Reach Ship News

Garden Reach Ship Pros & Cons

Pros

  • Company has delivered good profit growth of 26% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 23%
  • Debtor days have improved from 783.83 to 750.8days.
  • Company is almost debt free.

Cons

  • Stock is trading at 11.3 times its book value.
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