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Target: ₹501
CMP: ₹461.60
Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a ship building company in India, under the administrative control of the Ministry of Defence. GRSE’s order book stood at ₹22,242 crore comprising six ship building projects with 23 platforms, as of December 31, 2022. The company is executing an order for the Indian Coast Guard for a Fast Patrol Vessel (FPV).
GRSE is also executing a project for the Government of Bangladesh comprising six Patrol Boats, one Passenger cum Cargo Vessel for the Co‐operative Republic of Guyana, and one project for a next‐generation electric ferry for the Government of West Bengal. Recently, the company signed contract of ₹3,500 crore (approximately) on competitive bidding, boosting the shipyard’s credentials for building next-generation warships indigenously, with the first next-generation off-shore patrol vessels scheduled to be delivered in 44 months.
The company has ability to sustain the overall performance at the present level in a competitive environment, while maintaining leadership in warship building and retaining its largely debt-free status with comfortable liquidity.
Growth momentum is expected to continue in the coming quarters. The company is currently working on seven projects, comprising 15 ships for the Navy, Coast Guard, and others. While the company can pass through the higher cost, a sudden spike in prices of raw materials such as steel and energy can impact profitability.
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