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Garden Reach Shipbuilders & Engineers Limited (GRSE) Fair Value & Analysis

Industrials · IN · Market cap ₹316B

GR Garden Reach Shipbuilders & Engineers Limited GRSE · NSE
Price₹2,619
Fair Value₹1,195
Upside-54.4%
Quality62/100
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Expensive Growth
Solidly profitable · 10.7% net margin
negative free cash flow
0.72% dividend yield
Mixed vs. peers (7/12)
Moderate moat 64/100
Evidence: High Range ₹674.48 – ₹1,913 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 3 days ago

Share price −0.1% over the past month.

A solid business, but screening 54% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹1,913). The favourable scenario is already priced in.
  • The model range is unusually wide (₹674.48 to ₹1,913). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹3,468 ₹159.82 Fair Value ₹1,195 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹159.82 – ₹3,468 · fair‑value band ₹674.48 – ₹1,913 · the ₹2,619 price screens above the ₹1,195 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Garden Reach Shipbuilders & Engineers Limited (GRSE) currently trades at ₹2,619, while our model-based Fair Value estimate is ₹1,195, implying the stock looks roughly 54.4% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Garden Reach Shipbuilders & Engineers Limited generated revenue of ₹70.0B at a net margin of 10.7%. Revenue grew 29.1% year over year. It earns a return on equity of 31.8%. The balance sheet holds a net cash position of ₹33.5B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹674.48 (bear case) to ₹1,913 (bull case); at ₹2,619, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 33% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -60% fair-value upside, at -54%, GRSE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹484.11 ₹673.83 ₹5,363 76
Gordon GGM ₹171.22 ₹373.80 ₹628.93 70
Growth-Adj P/E ₹1,661 ₹2,373 ₹3,084 68
All 17 models by family
DCF Models
Owner Earnings ₹1,342 ₹2,746 ₹5,826 31
Earnings-Based
Graham-Dodd ₹443.99 ₹3,096 ₹4,345 54
Lynch FV ₹1,347 ₹1,924 ₹2,501 50
PEG = 1.0 ₹1,347 ₹1,924 ₹2,501 46
EPV ₹723.23 ₹798.66 ₹865.72 59
Dividend Discount
Gordon GGM ₹171.22 ₹373.80 ₹628.93 70
DDM Multi-Stage ₹171.22 ₹306.20 ₹389.56 61
Multiples
P/E Multiple ₹1,028 ₹1,371 ₹1,714 63
P/S Multiple ₹832.47 ₹1,110 ₹1,387 58
P/B Multiple ₹773.72 ₹1,032 ₹1,290 55
EV/EBIT ₹1,127 ₹1,404 ₹1,680 53
EV/EBITDA ₹972.68 ₹1,198 ₹1,424 54
EV/Revenue ₹888.73 ₹1,143 ₹1,397 43
Asset-Based
NCAV (Graham) ₹114.63 ₹153.60 ₹229.25 50
Economic Profit
Residual Income ₹484.11 ₹673.83 ₹5,363 76
ROIC Compounder ₹723.23 ₹798.66 ₹865.72 67
Growth Earnings
Growth-Adj P/E ₹1,661 ₹2,373 ₹3,084 68

Widest divergence: DCF Models (₹2,746) versus Asset-Based (₹153.60). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹70.0B
Revenue growth (YoY) +29.1%
Net margin 10.7%
Return on equity 31.8%
Free cash flow −₹1.3B FY2026
P/E ratio 43.5
More key figures
Operating margin 16.2%
EPS (TTM) ₹60.25
Dividend yield 0.7%
EPS growth (YoY) +24.2%
Net cash ₹33.5B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 58 · Market factors (momentum, volatility) 47

Profitability 51
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Garden Reach Shipbuilders & Engineers Limited engages in the design and construction of war ships in India. The company offers frigates, anti-submarine warfare corvette, missile corvette, landing ship tank, landing craft utility, survey vessel, fleet replenishment tanker, fast patrol vessel, offshore patrol vessel, inshore patrol vessel, water jet fast …

Full company description

Garden Reach Shipbuilders & Engineers Limited engages in the design and construction of war ships in India. The company offers frigates, anti-submarine warfare corvette, missile corvette, landing ship tank, landing craft utility, survey vessel, fleet replenishment tanker, fast patrol vessel, offshore patrol vessel, inshore patrol vessel, water jet fast attack craft, anti-submarine warfare shallow water craft, electric ferries, ocean going passenger and cargo ferry vessel, hovercraft, and fast interceptor boat products to the Indian Navy, Indian Coast Guard, and other government. It also provides unmanned surface vessels, autonomous underwater vessels, ship-based drones, and green platforms and naval surface guns. In addition, the company offers portable bridges; and deck machinery equipment, such as anchor capstans and windlass, mooring and dock capstans, general-purpose and ammunition davits, electric boats and electro-hydraulic drive deck machinery products, survey vessels, hydrographic and oceanographic surveys, helicopter traversing systems, and dock capstans and winches. Further, it engages in the assembling, overhauling, and testing of marine diesel engines, as well as provides dry docking and afloat maintenance, refit, and repair services for defense and commercial ships. The company was founded in 1884 and is based in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Garden Reach Shipbuilders & Engineers Limited reported revenue of ₹70.0B in FY2026 versus ₹17.5B in FY2022, a compound +41.5%/yr. Reported net income was ₹7.5B in FY2026, compounding +40.9%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹70.0B
Latest YoY
+38.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+40.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+44.0%
Avg. growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.4%
Revenue +41.5%/yr
FY22 ₹17.5B
FY23 ₹25.5B
FY24 ₹35.9B
FY25 ₹50.7B
FY26 ₹70.0B
Net income +40.9%/yr
FY22 ₹1.9B
FY23 ₹2.3B
FY24 ₹3.6B
FY25 ₹5.3B
FY26 ₹7.5B
Character of growth · EPS growth decomposed (2015-2026) +18.5 % p.a.
Revenue per share +13.2 pp

of which total revenue +13.2 pp · buybacks/dilution +0.0 pp

EBIT margin +9.6 pp
Tax rate +1.7 pp
Residual (interest, one-offs) −6.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

GRSE screens 54% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Garden Reach Shipbuilders & Engineers Limited Fair Value". https://www.fairvalue-calculator.com/stock/GRSE

Peer Group

Aerospace & Defense · 224 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Above median
Fair Value upside −54% · Above median
Return on equity (TTM) 32% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 11% · Above median
Operating margin (TTM) 16% · Above median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 0.7% · Below median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 43.5× · Pricier than median
P/B 12.02× · Pricier than 75% of peers
P/S (TTM) 4.51× · Pricier than median
EV/EBITDA 35.4× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 49
PAST 100 · sector 38
HEALTH 0 · sector 94
DIVIDEND 14 · sector 16

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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HD Hyundai Heavy Industries Co 329180 496,000 KRW 272,966 KRW -45%
Hanwha Aerospace Co 012450 1,156,000 KRW 573,468 KRW -50%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 346.75 TRY 130.70 TRY -62%
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Frequently asked questions

Is Garden Reach Shipbuilders & Engineers Limited (GRSE) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,195 versus a price of ₹2,619, about −54% (overvalued).
What is the fair value of GRSE?
Our model-based fair value for Garden Reach Shipbuilders & Engineers Limited is ₹1,195 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹2,619.
What is the quality score of GRSE?
Garden Reach Shipbuilders & Engineers Limited has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Garden Reach Shipbuilders & Engineers Limited (GRSE)?
Garden Reach Shipbuilders & Engineers Limited reported trailing-twelve-month revenue of about ₹70.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of GRSE?
The net profit margin of Garden Reach Shipbuilders & Engineers Limited is about 10.7%, meaning it keeps roughly 10.7% of revenue as net income. Based on the latest reported figures.
Does Garden Reach Shipbuilders & Engineers Limited pay a dividend?
Garden Reach Shipbuilders & Engineers Limited currently shows a dividend yield of about 0.72% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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