Garden Reach Shipbuilders & Engineers Ltd.
NSE: GRSEGarden Reach Shipbuilders & Engineers Ltd.: A 30-second snapshot
GRSE trades at a PE of 37.18 (forward PE 30.54) with a quality score of 52 and a mean analyst rating of 1.86 across 7 analysts (1-5 scale, lower = more constructive). The stock last closed at Rs 2,599, 22.16% below its 52-week high and down 8.92% over 3 months, though only marginally lower (-1.33%) over the past year. Debt-to-equity stands at roughly 0.01x, indicating negligible reliance on borrowed capital.
P/E
37.2
Forward P/E
30.5
ROE
—
Debt / Equity
1.42
Profit Margin
+10.7%
Div. Yield
+1.0%
5Y ROE > 15%
4/5
5Y FCF > 0
1/5
Quality
68/100
News
8 headlines · 7 positive · 0 negative
News Content Hub - Indian yard GRSE awarded contract to build four PSVs for ONGC - rivieramm.com
rivieramm.com
GRSE wins ₹1,032 crore ONGC order for four platform supply vessels - Business Standard
Business Standard
GRSE expands non-defense portfolio with ONGC contract for 4 vessels - BusinessLine
BusinessLine
Garden Reach Shipbuilders Q1 Standalone Net Profit Rises To 1.7B Rupees vs 1.2B YoY - Sahi
Sahi
Garden Reach Shipbuilders Q1 Results: Revenue growth strong at 38% but higher costs impact margins - CNBC TV18
CNBC TV18
Recent context
- ·GRSE was awarded a Rs 1,032 crore ONGC contract for four platform supply vessels, reported August 3-4, 2026 across Business Standard, BusinessLine, and rivieramm.com.
- ·Q1 FY27 standalone net profit rose to Rs 1.7B from Rs 1.2B YoY on 38% revenue growth, though CNBC TV18 reported (July 29, 2026) that higher costs weighed on margins.
- ·Mean analyst rating stands at 1.86 across 7 analysts (1-5 scale, lower = more constructive), even as the stock trades 22.16% below its 52-week high and below its 50-day moving average.
Strengths
- +5-year revenue growth of 38.5% and earnings growth of 43.9%, with return on equity above 15% in 4 of the last 5 years (consistency score 83).
- +Debt-to-equity ratio of approximately 0.01x with a falling trend, indicating growth has been funded with negligible leverage.
- +Q1 FY27 standalone net profit rose to Rs 1.7B from Rs 1.2B YoY (about 41%) on 38% revenue growth.
- +Won a Rs 1,032 crore ONGC order for four platform supply vessels (announced August 3, 2026), expanding the non-defense portfolio; 7 of 8 recently tracked headlines carry positive sentiment.
Weaknesses
- −Free cash flow was positive in only 1 of the last 5 years despite the strong revenue and earnings growth over that period.
- −The stock trades below its 50-day moving average (Rs 2,656.02 vs. last price Rs 2,599) and is 22.16% below its 52-week high, down 8.92% over the trailing 3 months.
- −Q1 FY27 coverage noted that the 38% YoY revenue growth was accompanied by higher costs that impacted margins (profit margin currently 10.67%).
- −The peer set used for sector comparison (Bharat Electronics, Larsen & Toubro, ABB India, CG Power, Cummins India) consists of broader industrial and capital-goods names rather than dedicated shipbuilders, and ROE / 1-year price-change data is unavailable for most of them, limiting how much the ranking reveals.
Open questions
- ?Does the gap between strong 5-year earnings growth and free cash flow being positive in only 1 of those 5 years reflect the timing of shipbuilding milestone billings, working-capital build-up, or something structural?
- ?With debt-to-equity near 0.01x, what specifically is absorbing cash if not leverage-funded expansion -- inventory, receivables, or advances to suppliers?
- ?How durable is the margin compression noted alongside the 38% Q1 revenue growth, and which cost lines are driving it?
- ?Given that the peer set used here is drawn from broader industrials rather than dedicated shipbuilders, how would GRSE's valuation and quality metrics compare against other shipyards or defense-adjacent PSUs?
Peer comparison: Infrastructure
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GRSE | Garden Reach Shipbuilders & Engineers Ltd.You're viewing | 37.2 | — | 52 |
| Industry avg | across 5 peers | 71.7 | +19.1% | 45 |
| ABB | ABB India Ltd. | 102.0 | +19.1% | 53 |
| BEL | Bharat Electronics Ltd. | 47.9 | — | 50 |
| CUMMINSIND | Cummins India Ltd. | 63.7 | — | 50 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 111.1 | — | 38 |
| LT | Larsen & Toubro Ltd. | 33.7 | — | 35 |
Technical state
Current price
₹2,599.00
SMA 50
₹2,656.02
SMA 200
₹2,571.76
RSI (14)
48.2 (neutral)
From 52w high
-22.2%
1Y return
-1.3%
3M return
-8.9%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFree cash flow was positive in only 1 of the last 5 years for which data is available, despite 5-year revenue growth of 38.5% and earnings growth of 43.9%, with return on equity above 15% in 4 of those 5 years (consistency score 83). Debt-to-equity is low at roughly 0.01x, with the multi-year trend flagged as falling, so the cash-conversion gap is not explained by leverage-funded growth -- it looks more consistent with shipbuilding-industry billing patterns (customer advances, milestone payments), though the underlying data does not let this be confirmed either way.
- mediumThe stock trades below its 50-day moving average (Rs 2,656.02 vs. a last price of Rs 2,599) though still above its 200-day average (Rs 2,571.76), is 22.16% below its 52-week high, and is down 8.92% over the trailing 3 months, even though the 1-year price change is only marginally negative (-1.33%) and the 14-day RSI (48.17) sits in neutral territory.
- lowThe comparison peer set used here -- Bharat Electronics, Larsen & Toubro, ABB India, CG Power, and Cummins India -- consists of broader industrial and capital-goods companies rather than dedicated shipbuilders. GRSE's PE rank (2nd-lowest of 6) and quality-score rank (2nd of 6) describe standing within this loosely related group; ROE and 1-year price-change rankings are unavailable (null) for most of these peers, further limiting the comparison.
- low7 of the 8 tracked headlines over the past two weeks carry a positive sentiment tag, but they trace back to two underlying events -- a Rs 1,032-crore four-vessel ONGC order and the Q1 FY27 results release -- both reported between July 29 and August 4, 2026, rather than eight independent developments, so the headline count overstates the breadth of new information. One Q1 headline also notes that 38% YoY revenue growth was accompanied by higher costs that impacted margins.
Cross-section contradictions
- Q1 FY27 net profit rose from Rs 1.2B to Rs 1.7B YoY (about 41%) on 38% revenue growth, and a Rs 1,032-crore ONGC order was announced in early August 2026 (7 of 8 recent headlines positive), yet the stock is down 8.92% over the trailing 3 months and sits 22.16% below its 52-week high.
- 5-year revenue growth of 38.5% and earnings growth of 43.9%, with return on equity above 15% in 4 of the last 5 years, have not been matched by consistent cash generation -- free cash flow was positive in only 1 of those 5 years, despite debt-to-equity remaining low at roughly 0.01x throughout.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 9 Aug 2026 · rotates through NIFTY 500 every ~5 days