⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GRSE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | GRSE | Market Cap | 27,394 Cr. | Current Price | 2,393 ₹ | High / Low | 3,538 ₹ |
| Stock P/E | 39.8 | Book Value | 200 ₹ | Dividend Yield | 0.58 % | ROCE | 36.6 % |
| ROE | 27.6 % | Face Value | 10.0 ₹ | DMA 50 | 2,446 ₹ | DMA 200 | 2,424 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | -0.35 % | PAT Qtr | 171 Cr. | PAT Prev Qtr | 154 Cr. |
| RSI | 47.7 | MACD | -24.0 | Volume | 7,67,423 | Avg Vol 1Wk | 7,29,458 |
| Low price | 1,366 ₹ | High price | 3,538 ₹ | PEG Ratio | 0.95 | Debt to equity | 0.01 |
| 52w Index | 47.3 % | Qtr Profit Var | 73.9 % | EPS | 60.2 ₹ | Industry PE | 54.2 |
📊 Core Financials
- Quarterly PAT increased from ₹154 Cr. to ₹171 Cr., showing consistent growth.
- ROCE at 36.6% and ROE at 27.6% highlight strong profitability and capital efficiency.
- Debt-to-equity ratio of 0.01 → virtually debt-free.
- Cash flows supported by steady government contracts and rising defense demand.
💹 Valuation Indicators
- P/E Ratio: 39.8 vs Industry PE of 54.2 → relatively undervalued compared to peers.
- P/B Ratio: ~12x (₹2393 / ₹200) → premium valuation.
- PEG Ratio: 0.95 → fair valuation considering growth prospects.
- Intrinsic Value: Current price slightly above fair zone, but justified by growth visibility.
🏢 Business Model & Competitive Advantage
- Defense shipbuilding PSU with strong government backing.
- Strategic importance ensures long-term demand and limited competition.
- Operational efficiency reflected in high return ratios.
📈 Technical & Entry Zone
- Current Price: ₹2393, close to 50 DMA (₹2446) and 200 DMA (₹2424).
- RSI: 47.7 → neutral, not overbought.
- MACD: -24.0 → mild bearish trend.
- Entry Zone: Attractive accumulation between ₹2000–₹2200.
- Long-Term Holding: Strong fundamentals justify 3–5 year horizon.
✅ Positive
- Debt-free balance sheet.
- High ROCE and ROE indicate strong efficiency.
- Quarterly profit growth momentum.
⚠️ Limitation
- High P/B ratio reflects premium valuation.
- Heavy reliance on government contracts limits diversification.
📉 Company Negative News
- Decline in FII (-0.30%) and DII (-0.35%) holdings.
- Correction from 52-week high of ₹3538.
📈 Company Positive News
- Quarterly profit growth of 73.9% YoY.
- Strong order book visibility in defense sector.
🏭 Industry
- Defense sector supported by rising government budgets.
- Industry PE at 54.2 shows strong investor confidence.
🔎 Conclusion
GRSE is a fundamentally strong, debt-free defense PSU with excellent return ratios and growth visibility.
Despite premium valuations, its strategic importance and efficiency justify long-term holding.
Best accumulated on dips around ₹2000–₹2200 for investors with a 3–5 year horizon.