At a Glance
Garden Reach Shipbuilders (GRSE), India’s OG warship maker from Kolkata, has quietly become a 5-bagger. With ₹5,076 Cr revenue, 54% PAT growth, 37% ROCE, and 100+ warships delivered — GRSE is now a full-blown PSU multibagger that doesn’t even need missiles to explode (stock price-wise).
📦 1. Business Snapshot: Warships, Not Worship
GRSE is under the Ministry of Defence but moves like a startup that read The Art of War one too many times. Here’s what it actually builds:
- ✅ Frigates, Corvettes, Survey Vessels, Offshore Patrol Vessels
- ✅ Floating Jetties, Tug Boats, Ferries, Barges
- ✅ Contracts primarily from Indian Navy, Coast Guard, and Government PSUs
- ✅ Now exporting to Mauritius, Guyana, Seychelles, and also helping build platforms for Norway and Sweden (cruise/propulsion collabs)
⚙️ Facilities: 3 shipyards in Kolkata
🛠️ R&D Tie-ups: SunStone, Kongsberg, Berg Propulsion — they’re not just building boats anymore, they’re designing engines and platforms
🧾 2. Financials: Defence PSU with Private-Sector DNA?
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,141 | 1,754 | 2,561 | 3,593 | 5,076 |
| EBITDA (₹ Cr) | 81 | 141 | 149 | 235 | 421 |
| Net Profit (₹ Cr) | 153 | 190 | 228 | 357 | 527 |
| OPM (%) | 7% | 8% | 6% | 7% | 8% |
| ROE (%) | 21% | 20% | 20% | 27% | 28% |
| ROCE (%) | 21% | 20% | 20% | 27% | 37% |
| EPS (₹) | 13.4 | 16.6 | 19.9 | 31.2 | 46.0 |
🧠 TL;DR:
- Revenue up 4.5x in 5 years
- Net Profit up ~3.5x
- EPS up 4x
- And your brokerage guy still told you to buy HAL instead 🙃
📊 3. 5-Year CAGR Party
| Metric | CAGR |
|---|---|
| Revenue | 29% |
| Net Profit | 26% |
| Stock Price | 74% |
| ROE | 20%+ steady |
| TTM PAT Growth | 54% |
This is what happens when Make in India stops being a slogan and becomes literal shipbuilding.
🔧 4. FY25 Results: Everything’s Firing
- 🚀 Q4FY25 PAT: ₹244 Cr (up 118% YoY)
- 💥 Q4 Revenues: ₹1,642 Cr (up 62% YoY)
- 📦 FY25 Order Book: ₹25,000+ Cr (est.)
- 🛳️ Delivered 6 vessels in FY25, including large ASW and patrol vessels
- 🧾 Other Income: ₹335 Cr (Significant but consistently recurring via treasury)
The PSU magic: tons of cash, no debt, and every quarter is a Raksha Bandhan from the Government of India.
🛡️ 5. Shareholding & MoD Mojo
| Category | Mar ’23 | Mar ’25 |
|---|---|---|
| Promoter (MoD) | 74.5% | 74.5% |
| FIIs | 2.7% | 3.85% 📈 |
| DIIs | 7.9% | 1.9% 📉 |
| Public | 14.9% | 19.8% 🚀 |
Retail investors are marching in. PSU-bulls have clearly decided HAL isn’t the only warship in town.
⚔️ 6. Valuation Check: Too Expensive to Sail?
| Metric | Value |
|---|---|
| CMP | ₹3,183 |
| Market Cap | ₹36,463 Cr |
| EPS (FY25) | ₹46.04 |
| P/E | 69x |
| Book Value | ₹182 |
| P/B | 17.5x |
| Dividend Yield | 0.29% (but 30% payout ratio) |
🤯 P/E 69? Is This a Defence Stock or a SaaS IPO?
Let’s not get blinded by ROCE:
- Most of GRSE’s earnings are backed by sovereign orders (low risk)
- It has almost no debt
- Order book visibility > 3 years
- But it’s still a shipyard — not a software play
🎯 7. Fair Value Estimate
Let’s assume:
- FY26 PAT grows 20% → ₹632 Cr
- Fair P/E for a PSU defence shipbuilder = 25x (generous)
- Shares = 11.5 Cr
🧮 FV = ₹632 × 25 / 11.5 = ₹1,375/share
Even adding:
- +25% for export optionality
- +25% for zero-debt + high ROCE + order pipeline
🎯 EduInvesting FV Range = ₹1,375 – ₹1,720
So yes, current price = expensive. Not a scam. Just too hyped. Like trying to book a Goa villa on 31st Dec.
🧠 Final Verdict: ₹36,000 Cr Market Cap, And It’s Just Getting Started?
GRSE’s performance has been stellar. But the valuation has clearly overshot reality like a missile with no target.
- Great company? ✅
- Multibagger past? ✅
- Future upside? Possible
- Time to buy now? Only if you enjoy sailing in frothy waters ⛵
It’s still one of the cleanest PSU defence plays out there — but maybe wait for a correction before boarding.
Tags: Garden Reach Shipbuilders, GRSE, PSU multibagger, Defence stocks, Indian Navy, shipbuilding India, HAL vs GRSE, Make in India, ROE 28%, defence PSU rally
✍️ Written by Prashant | 📅 June 24, 2025
