GRSE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a breakdown of Garden Reach Shipbuilders & Engineers (GRSE) — a highly efficient defense PSU riding on profit spikes and robust return metrics 🚢📈

📊 Core Financials Overview

Earnings Growth

PAT soared 119% QoQ from ₹98.2 Cr. to ₹244 Cr. — a major boost confirming operational strength.

EPS: ₹46, backed by real cash profits, signals consistent earnings power.

Returns Masterclass

ROCE: 37.3%, ROE: 28.1% — top-tier metrics showing high return on deployed capital.

These figures suggest GRSE is outpacing most players in the defense PSU space.

Zero Leverage

Debt to Equity: 0.00 — rock-solid balance sheet; enables strategic flexibility and insulates against interest rate pressure.

Volume & Sentiment

Marginal dip in DII holding (–0.09%) is offset by a 1.48% surge in FII interest, hinting at institutional confidence.

💰 Valuation Insights

Metric Value Interpretation

P/E Ratio 56.0 Fairly high, but justified by returns & growth

P/B Ratio ~14.18 Price trades steep vs. book, implies premium

PEG Ratio 1.31 Acceptable — suggests valuation aligns with growth

Intrinsic Value ~₹2,300–₹2,500 Currently near fair value; not grossly overvalued

Dividend Yield 0.36% Not a yield play — primarily a growth stock

⚠️ Trading at premium multiples — but has the earnings firepower to defend it.

⚙️ Business Model & Moat

Specialist in warship and patrol vessel manufacturing for Indian Navy and Coast Guard.

One of India's few integrated shipbuilders — from design to commissioning.

Strong order book visibility and support from government naval modernization drive.

Its legacy, execution strength, and critical role in national defense form a unique competitive edge.

📈 Entry Zone & Technical Pulse

RSI: 41.4 — mildly oversold, momentum slowing.

MACD: –93.0 — suggests bearish sentiment.

Price trades below DMA 50 but well above DMA 200, indicating a near-term correction.

🎯 Suggested Entry Range

Near-term dips: ₹2,350–₹2,500

Aggressive buyers may wait for deeper corrections: ₹2,250–₹2,350

📦 Long-Term Holding View

✅ Strong balance sheet, high ROCE/ROE, consistent earnings

🧠 Strategic positioning in naval defense creates long-term growth visibility

📈 Ideal for a 3–7 year hold — especially for investors bullish on India's defense capex cycle

Want to create a watchlist of shipbuilding and defense infrastructure PSUs like Cochin Shipyard or Mazagon Dock? I can help map out their metrics next ⚓📊

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