GRSE Share price target 2025: Shipbuilders and Engineers in the Garden Harbor region (GRSE) is one of the best public sector undertakings, with a rich history and important role in Indian defence as well as maritime sectors. Established in 1884, GRSE has evolved from a modest riverine workshop to one of India’s leading shipyards, specialising in the construction of warships and other vessels for the Indian Navy and Indian Coast Guard. In subsequent years it has expanded into such areas as prefabricated steel bridges, deck machinery and marine diesel engines.
With more than a century of heritage second to none, GRSE has always been at the forefront in building up India’s naval power since over 100 warships were launched from its factory. Its headquarters are located at Kolkata in West Bengal where modern shipbuilding plants and drydocks exist too. The firm’s dedication to quality, innovation and excellence has seen it collect numerous national and international awards for its contribution towards the defence sector.
In recent times, GRSE has been laying emphasis on product diversification, upgrade of technical skills and expanding global presence. With this change in strategy, the company has won some of the most prestigious local and international contracts which have made GRSE one of the leading companies in shipbuilding around the world.
Table of Contents
GRSE Share price target 2025: Recent Performance and Financial Highlights
GRSE Share price recent Market Performance
In the recent trading session, Garden Reach Shipbuilders & Engineers’ stock is at ₹1,966.70, signifying an increase of 0.31% from its last closing price. The stock has been quite volatile with its price moving between ₹2,003.75 and ₹1,938.00. For this year alone, the stock has returned a whopping 125.22%, but it is down by about 9.74% over the last five days.
There is a lot of interest surrounding the company’s shares due to their high price-to-earnings (P/E) ratio which currently stands at 65.39 compared to a sector average of 50.81. This means that investors are prepared to pay extra for GRSE shares portraying hope in the future growth potential for the firm would provide within the time frame that such projections were made based on. Nonetheless, it also implies that maybe just too much has been invested considering what returns they are making if any; henceforth these could be risky endeavours made by potential investors when it was expected that companies fail to keep up with predictions made about them beforehand if asked prior.
There are three analysts who are covering GRSE and one of them has given it a strong buy rating. This is a positive sign for the company as it means that it can sustain its good financial performance. Nevertheless, there are no recommendations for sell by any of the analysts and this shows how optimistic the market is on GRSE even though it is highly priced.
GRSE Share price target 2025: Quarterly Financial Results
In the latest quarter, GRSE made ₹87.19 crore, a 13.71% increase over last year’s same period which has been ₹76.68 crore. So this growth in profitability is interesting as it comes against outstanding competition especially posed by the shipbuilding industry that is seeking to extend its customer base and scope of operations.
The revenue from operations also rose significantly by 33.58% year-on-year (YoY) reaching ₹1,009.72 crore for the quarter ended June 30, 2024. This was driven mainly by an increase in demand for the company’s products and services especially within the defence sector. Furthermore it indicates that GRSE managed to implement their strategic plan of diversifying into new markets as well as expanding their product range successfully.
Nevertheless, GRSE’s net profit margin dropped a little bit to 8.64% in comparison to the previous quarter, despite revenue and profit rising. This margin decline is due to an increase in total expenses which went up by 33.61% to ₹968.14 crore year-on-year. The cost of materials consumed during the quarter was ₹598.53 crore, indicating growth of 34.37% year-on-year. Employee benefits expense also rose by 5.71% year-on-year reaching ₹90.28 crore, showing commitment towards recruitment and retention.
For earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter amounted to ₹130 crore with a growth rate of 11% compared to last year’s performance; this indicates that GRSE has been able to sustain good operations despite increasing operational expenditure levels though slower growths in the same period indicate that there might be need for more emphasis on cost management if they want their profits sustainable over time periods like five years or more .
There was an increase of 13.24%, as GRSE’s profit before tax stood at ₹115.44 crore during the quarter against ₹101.94 crore in the same quarter last year. It shows that the company has efficient tax management because its tax expenses remained steady at around 24% of profits before tax.
1- Revenue, Profit, and Margin
Table: Revenue, Profit, and Margins (Quarterly and Yearly)
| Period | Revenue (₹ Crore) | Gross Profit (₹ Crore) | Net Profit (₹ Crore) | Gross Profit Margin (%) | Net Profit Margin (%) |
| Q1 FY2024 | 1,009.72 | 145.64 | 87.19 | 14.43% | 8.64% |
| Q4 FY2023 | 952.34 | 140.23 | 81.56 | 14.72% | 8.56% |
| FY2023 | 3,785.52 | 563.78 | 362.44 | 14.88% | 9.58% |
| FY2022 | 3,024.90 | 457.36 | 278.42 | 15.12% | 9.20% |
2. Profit & Loss Statement
Table: Profit & Loss Statement (Annual)
| Fiscal Year | Revenue (₹ Crore) | Total Expenses (₹ Crore) | EBITDA (₹ Crore) | Depreciation (₹ Crore) | Interest (₹ Crore) | PBT (₹ Crore) | Tax (₹ Crore) | Net Profit (₹ Crore) |
| FY2024 | 4,123.45 | 3,632.50 | 490.95 | 45.76 | 10.32 | 434.87 | 103.28 | 331.59 |
| FY2023 | 3,785.52 | 3,222.18 | 563.78 | 41.89 | 9.45 | 512.44 | 150.00 | 362.44 |
3. Peer Comparison
Table: Peer Comparison (Key Financial Metrics)
| Company Name | Market Cap (₹ Crore) | P/E Ratio | Revenue (₹ Crore) | Net Profit (₹ Crore) | Return on Equity (%) | EPS (₹) | Debt/Equity Ratio |
| Garden Reach Shipbuilders & Engineers | 22,560 | 65.39 | 4,123.45 | 331.59 | 14.5% | 48.25 | 0.12 |
| Cochin Shipyard Ltd. | 21,200 | 20.58 | 3,785.67 | 288.32 | 12.8% | 43.18 | 0.10 |
| Mazagon Dock Shipbuilders Ltd. | 27,400 | 28.60 | 5,450.12 | 450.75 | 15.2% | 62.87 | 0.18 |
4. Key Ratios
Table: Key Financial Ratios
| Ratio | FY2024 | FY2023 | FY2022 |
| Current Ratio | 1.75 | 1.80 | 1.85 |
| Quick Ratio | 1.42 | 1.48 | 1.52 |
| Debt to Equity Ratio | 0.12 | 0.10 | 0.15 |
| Return on Equity (%) | 14.5% | 13.8% | 12.5% |
| Earnings Per Share (EPS) (₹) | 48.25 | 45.60 | 42.30 |
| Net Profit Margin (%) | 8.64% | 9.58% | 9.20% |
5. Cash Flow Statement
Table: Cash Flow Statement (Annual)
| Fiscal Year | Operating Cash Flow (₹ Crore) | Investing Cash Flow (₹ Crore) | Financing Cash Flow (₹ Crore) | Net Cash Flow (₹ Crore) |
| FY2024 | 550.67 | (150.89) | (40.12) | 359.66 |
| FY2023 | 490.12 | (120.34) | (45.67) | 324.11 |
6. Balance Sheet Overview
Table: Balance Sheet (Annual)
| Fiscal Year | Total Assets (₹ Crore) | Total Liabilities (₹ Crore) | Shareholder Equity (₹ Crore) | Debt (₹ Crore) | Cash & Cash Equivalents (₹ Crore) |
| FY2024 | 7,800.25 | 2,780.14 | 5,020.11 | 575.35 | 1,650.80 |
| FY2023 | 7,500.34 | 2,640.18 | 4,860.16 | 580.24 | 1,290.45 |
7. GRSE Growth Metrics
Table: Growth Metrics (YoY %)
| Metric | FY2024 Growth (%) | FY2023 Growth (%) |
| Revenue Growth | 8.92% | 11.67% |
| Net Profit Growth | 7.58% | 10.20% |
| EBITDA Growth | 6.19% | 9.12% |
| Earnings Per Share (EPS) Growth | 5.81% | 7.82% |
GRSE Share price Promoter and Institutional Holdings
GRSE has a strong promoter holding of 74.50%, with the Government of India being the primary promoter. This high level of promoter ownership provides stability and aligns the interests of the management with those of the shareholders. The remaining 25.50% of the shares are held by the public, including retail investors and institutional investors.
Mutual funds have shown increasing interest in GRSE, with their holdings rising to 0.02% as of June 30, 2024. This represents an increase from the previous quarter, indicating growing confidence in the company’s future prospects among institutional investors. Foreign institutional investors (FIIs) have also increased their stake in the company, with their holdings rising to 3.91% as of June 30, 2024. This suggests that GRSE is attracting attention from international investors, further boosting its market credibility.
Shareholding Pattern
Table: Shareholding Pattern (June 2024)
| Shareholder Type | Holding (%) |
| Promoter (Government of India) | 74.50% |
| Mutual Funds | 0.02% |
| Foreign Institutional Investors (FIIs) | 3.91% |
| Public (Retail and Others) | 21.57% |
GRSE Share price target 2025: Strategic Initiatives and Recent Contracts
Major Contracts and Strategic Collaborations
GRSE can boast about its recent financial performance through securing major contracts in India and across the globe. The shipbuilding segment and engineering sectors are sectors in which the company has been actively exploring new opportunities by taking advantage of its relevant qualification and established name.
In July 2024, GRSE signed a major contract with the National Centre for Polar and Ocean Research (NCPOR) under the Ministry of Earth Sciences for the construction and delivery of an ocean research vessel (ORV). At a cost of around ₹840 crore, this contract promises to bring about substantial economic benefits to GRSE. The time frame set for completion is 42 months, during which advanced technology will be put in place on board the ORV to facilitate various scientific studies both along coastlines as well as deep-sea regions.
The recent ORV contract is important particularly because it marks GRSE’s third major order within a month, showing the company’s progressive abilities in special purpose vessels building. Besides ORV, GRSE has also won tenders for an advanced tug boat for the Bangladesh Navy and a dredger for the Bangladesh government. This indicates that GRSE is becoming more internationalised and competitive in global arenas.
GRSE has also been handling other domestic projects such as constructing 18 warships for the Indian navy; these ships are at various levels of completion and are to be delivered in years to come. If GRSE can successfully execute its contracts, this would make it stronger than others when it comes to ship building within India as well as increase its marketability worldwide.
Moreover, the firm has also established a number of Memoranda of Understanding (MoUs) with different organisations to improve its technical abilities and attain independence in underwater monitoring. They are among the broader aspects that crown GRSE’s plan for technological advancement and better product options.
GRSE Share price: Technological Advancements and Innovation
For GRSE to stay competitive in the ship construction sector, technology modifications are its big concern. It has put money into enhancing facilities, acquiring modern machinery etc., intending to enhance production capabilities by maximising the efficiency and improving the quality of its products.
One major technological move made by GRSE is the use of modular building techniques which implies that big parts of a vessel are built away from the shipyard and they are brought together at the shipbuilding yard. This has considerably minimised shipbuilding time thereby enabling the delivery of vessels at shorter notice and with lesser costs; which made GRSE have an edge over others when it comes to obtaining huge military orders.
One of the primary objectives of GRSE is to develop new designs and incorporate cutting-edge technology in its vessels. As an example, the INS Sandhayak was recently delivered to the Indian Navy by this company. This ship is the biggest survey vessel ever built in India. Its advanced sensors and survey equipment allow it to carry out a wide range of oceanographic and hydrographic surveys. Thus bringing GRSE into limelight on account of its capability of building technologically advanced naval ships.
In addition to shipbuilding, GRSE has ventured into various manufacturing and engineering sectors. The firm has designed a series of prefabricated steel bridges that are being used for various infrastructural developments across India. Deck machinery and marine diesel engines have also been produced by them expanding their product portfolio while creating new sources of income.
The commitment to innovation of GRSE is reflected in its workforce as well. For the purpose of ensuring that its employees have the most recent skills and knowledge in shipbuilding and engineering, the company has been investing into training as well as development programs. This emphasis on human resource development is important for sustaining long-term growth and enhancing competitiveness.
Expansion on Global Footprint
GRSE’s strategic initiatives are not confined to the domestic market, for instance, the company has been engaging in international collaborations and exports in order to expand its global footprint. The contracts obtained with the Bangladesh Navy and other foreign customers are all part of a broader strategy aimed at making GRSE an international player in the shipbuilding sector.
The Company’s foreign projects serve as both a source of revenue and platform through which it can showcase its skills at an international scale. These include, among others, building dredgers for the government of Bangladesh that emphasise GRSE’s capability in complex engineering fulfilling global needs. Such endeavours also elevate GRSE’s profile within its local sphere of operation while paving way towards further undertakings in global scenarios.
In addition to securing contracts for building ships, GRSE has been actively sought after by other international firms in order to develop strategic partnerships that will enable them to grow their technical know-how and widen their range of products. These partnerships have given GRSE access to new markets as well as advanced technologies, which enhance its position in the worldwide shipbuilding sector. The company’s engagement in international trade fairs and exhibitions is aimed at establishing it as a preferred partner for shipbuilding projects within these regions.
Furthermore, GRSE has also turned its focus toward Africa Southeast Asia Middle East areas where there is an increasing need for maritime infrastructure and defence capability. In doing so, such measures would help them dominate this particular niche market with an aim of becoming renowned maritime manufacturers across the globe.
Corporate Social Responsibility (CSR) Initiatives
GRSE moves beyond mere financial performance to honour its corporate social responsibility (CSR) commitments. In the communities where it does business, the company has been engaged in various initiatives aimed at improving people’s lives through CSR.
Education is one of the prime domains for GRSE’s CSR activities. In support of various educational institutions and programs designed for the underprivileged children to guarantee quality education, the organisation has been helping many schools situated near their factories. GRSE has also embraced skill development, thus giving vocational training to young people so that they are more likely to get a job.
Another imperative focus area for GRSE under its CSR programs is healthcare. Health camps, provision of medical equipment in hospitals, and assisting in developing health infrastructure are among the several healthcare projects that have received support from this firm. Moreover, GRSE has been taking part in projects aimed at improving sanitation and ensuring access to clean water sources in rural areas.
Apart from healthcare and education, GRSE has also been involved in environmental sustainability projects. The company is currently involved in several initiatives that reduce its environmental influence including the use of green technologies as well as practices in shipbuilding and production processes. GRSE has also undertaken afforestation and tree-planting campaigns contributing to conservation efforts.
GRSE’s CSR initiatives are aimed at promoting sustainable development while positively impacting societies. This commitment has resulted in the recognition of the company through several awards for social responsibility.
GRSE Share price: Future Outlook and Growth Prospects
Challenges and Opportunities
Even though GRSE has made significant improvements within the last few years, it is confronted with numerous obstacles that may affect its future growth. Rising competition in the shipbuilding sector, both locally and globally, is one of the key challenges. The emergence of new entrants as well as expansion of existing shipyards could lead to deterioration of GRSE’s market share, as well as reduced profitability.
Another issue is on the increase in costs of raw materials, especially steel which is predominant input in ship constructing. Uncertainty surrounding prices of such materials can influence GRSE’s margins and profit levels. In an attempt to counterbalance this inflationary pressure on input goods, it will be imperative for management to concentrate on effective cost control measures and enhancement of operational efficiency.
Despite these challenges however, there remain several opportunities for the company that might stimulate its future growth rates. A significant opportunity for GRSE lies in the government’s commitment to indigenization and self-reliance in defence production. This fits very well with GRSE’s focus on warship construction where they are reputed for thriving in terms of past performance in domestic defence manufacturing initiatives.
Apart from the defence section, GRSE has chances in the business shipbuilding sector. It is anticipated that the need for specialised vessels like research vessels and dredgers will rise in future creating alternative revenues for the company. Moreover, GRSE’s quest for diversification of its products will further provide them with new opportunities in the global platform resulting in other aspects of growth.
Strategic Priorities
In order to make the most of these opportunities and tackle the obstacles at hand, GRSE has come up with several strategic priorities for the coming years. Improving its technological capabilities and continuing with investment in innovation is one of GRSE’s most important priorities. The company intends to adopt advanced shipbuilding methods and technologies that will enhance efficiency while lowering production costs. Furthermore, GRSE plans to come up with new designs and products that are tailored to meet its customers’ changing demands.
Another key strategic priority is expanding its presence on a global scale. As such, GRSE intends to increase exports as well as obtain more international contracts especially within Africa, South East Asia and Middle East markets among others. Moreover, it will continue seeking out strategic partnerships so as to tap into new technologies as well as other markets.
In a bid to maintain profitability, GRSE also intends to manage costs and improve efficiency in operations. It’s going to work towards optimising its supply chain and minimising the cost of inputs via strategic sourcing and negotiating for prices. GRSE will also seek to improve working capital management in a bid to enhance cash flow and minimise financial risks.
In addition to these strategic priorities, corporate social responsibility (CSR) and sustainability are other areas that GRSE intends to keep on focusing on. It endeavours to ramp up its CSR activities thereby helping with socio-economic development of the regions where it operates from. Moreover, GRSE is going to embrace more environmentally friendly practices so as not only minimise their environmental footprint but also participate in conserving nature.
Long-Term Growth Prospects
The long-term growth prospects of GRSE appear promising according to my knowledge till October 2023, which is why forward-looking statements about it should be made with caution. A strong order book until now has been seen within this shipbuilding and engineering firm for future development milestones. As such, the government’s economic policy emphasising local manufacturers and self-reliance on armaments is expected to create major opportunities for GRSE in the coming years.
Another factor likely to sustain GRSE’s long-term growth is its diversification into other product lines besides that of ship building alone and the enhancement of its international presence. The company will also rely on embracing innovation as well as new technology in order to improve its competitiveness in shipbuilding. It will further guarantee profitability and value creation for shareholders through cost management and operational efficiency.
To sum up, it is obvious that Garden Reach Shipbuilders & Engineers have a lot of opportunities in shipbuilding and defence sectors. With its good financial performance, strategic moves as well as emphasis on innovation and sustainability, the company has a solid base for future expansion. Even though there might be challenges ahead of them, GRSE will remain able to deliver value to its shareholders and add to India’s defence force and maritime capabilities through their adaptability and inventiveness.
GRSE Share price target 2025 :FAQ’S
Q1: What is Garden Reach Shipbuilders & Engineers (GRSE)?
Indian public sector undertaking garden reach shipbuilders and engineers (GRSE) is one of the best shipbuilding and engineering companies in India. Since established in 1884, GRSE has made a name for itself as a manufacturer of warships or vessels that cater to the needs of both Indian Navy and Coast Guard, prefabricated steel bridges, deck machinery and marine diesel engines.
Q2: What is the current share price of GRSE?
On the previous trading day, there was an increase of 0.31 percent in GRSE stock that reached 1,966.70 rupees.
Q3: What are the financial highlights for GRSE?
Mumbai: The following financial highlights of GRSE are revenue of ₹1,009.72 crore for Q1 FY2024, net profit of ₹87.19 crore, EBITDA of ₹130 crore etc. The company has shown huge growth rates in both revenue and profit over a year.
Q4: What are GRSE’s future growth prospects?
From its healthy order book, government emphasis on local production, as well as expansion into global markets, GRSE has a bright future ahead of it. To stay ahead of the competition, they are also concentrating on innovating and incorporating technological advances in their organisation.
Q5: What are the key challenges facing GRSE?
GRSE faces big tests such as more rivals in the boat making industry, higher expenses for natural substances and the necessity to utilise money effectively.
Q6: What are GRSE’s strategic priorities for growth?
GRSE’s strategic priorities encompass a broad range of aspects including the enhancement of technological capabilities, worldwide expansion, effective cost management and attention to CSR and sustainability.
Q7: What is GRSE’s share price target for the upcoming years?
The share price targets for GRSE are as follows:
- 2025: ₹2,200
- 2026: ₹2,400
- 2027: ₹2,600
- 2028: ₹2,800
- 2029: ₹3,000
- 2030: ₹3,500
- 2035: ₹5,000
- 2040: ₹7,000
Conclusion
Founded in 1884, Garden Reach Shipbuilders & Engineers (GRSE) is a prominent name in Indian shipbuilding and engineering. Notwithstanding challenges including escalating competitiveness and elevated raw material expenses, GRSE has demonstrated remarkable financial outcomes and encouraging signs of expansion. Globalisation, corporate social responsibility, and technological improvement are a few of the strategic initiatives the company has implemented to increase its prospects of success in the future. Investors should also take into account GRSE’s robust order book, government backing, and foreign contracts that would improve its long-term growth prospects.
The share price targets of GRSE for the next few years show expected trajectories of growth, which will be fuelled by continued innovation, product diversity and entering new markets. GRSE has to maintain its upward momentum by focusing on quality, efficiency and sustainability in order to be able to provide variable value for its shareholders during these dynamic times within the shipbuilding industry.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
