Updated: 8 December 2025 | Markets: India (NSE: GRSE, BSE: 542011)
GRSE share price today: sharp pullback after a stellar year
Garden Reach Shipbuilders & Engineers Ltd (GRSE), the Kolkata-based defence PSU shipyard, is trading around ₹2,400 per share on 8 December 2025, down roughly 2.5–3% intraday compared with Friday’s close near ₹2,470. [1]
According to live data from Mint and Screener, GRSE:
- Trades near ₹2,404–2,405 (late‑morning quote, 8 Dec 2025)
- Has a 52‑week range of about ₹1,180 (low) to ₹3,535 (high)
- Still shows a year‑to‑date gain of ~53%, despite the recent correction
- Commands a market cap around ₹27,500 crore
- Trades on a trailing P/E in the mid‑40s (≈45–47x) and P/B around 12–14x, higher than its own historical averages and above book value but broadly in line with premium defence peers like Mazagon Dock and Cochin Shipyard on earnings multiples. [2]
In the last five trading sessions, the stock has fallen about 11–12%, putting it on the Economic Times list of “concurrent losers” — 12 BSE500 stocks that have declined more than 7% across five consecutive sessions ending 5 December 2025. [3]
At the same time, GRSE is still up sharply over the past 12 months (around 39% stock price CAGR over the last three years, per Screener), reflecting a multi‑year rerating on the back of strong defence order inflows and profitability. [4]
Strong Q2 FY26 results underpin the fundamental story
The short‑term price wobble contrasts with robust recent earnings. In Q2 FY26 (quarter ended 30 September 2025), GRSE reported:
- Revenue from operations: ₹1,677 crore, up 45.45% year‑on‑year (YoY) vs ₹1,153 crore in Q2 FY25
- EBITDA: ₹225 crore, up >56% YoY
- EBITDA margin:9.3%, expanding by 332 bps from ~6.0% a year earlier
- Net profit (PAT):₹154 crore, up about 57% YoY (vs ~₹98 crore) [5]
This lines up with the quarterly data compiled by Screener, which shows:
- Q2 FY26 sales of ₹1,677 crore
- Other income of ₹69 crore
- Profit before tax of ₹209 crore
- Net profit of ₹154 crore, EPS of ₹13.43 for the quarter. [6]
Earlier, Q4 FY25 (March 2025 quarter) was also strong, with Mint data indicating:
- Revenue: about ₹1,642 crore, up roughly 62% YoY
- Net income: about ₹244 crore, up ~119% YoY. [7]
For the full FY25, GRSE reported net profit of ₹527.4 crore, with robust profitability metrics:
- 5‑year profit CAGR: ~25%
- Return on Equity (ROE): ~28% in FY25
- Return on Capital Employed (ROCE): ~36–37%
- Debt‑to‑equity: near 0x, effectively debt‑free. [8]
Alongside the Q2 FY26 results, the board declared an interim dividend of ₹5.75 per share, amounting to ₹65.87 crore, with a record date of 11 November 2025. [9]
Screener’s long‑term data also shows that GRSE has maintained a healthy dividend payout ratio around 30% while growing earnings rapidly — a combination that has helped attract institutional interest. [10]
Order book and pipeline: large Navy projects drive multi‑year visibility
A key pillar of the GRSE investment story is its defence order book.
- As of 31 March 2025, GRSE reported an order book of ₹22,680.75 crore. [11]
- That is roughly 4.5 times FY25 revenue of about ₹5,076 crore, giving multi‑year execution visibility. [12]
Despite the recent cancellation of a $21 million (₹179.75 crore) advanced ocean‑going tug contract by Bangladesh, the company told exchanges that this order would have contributed only ~0.8% of the existing order book, and therefore would not materially impact its finances. [13]
More important is the pipeline of future Indian Navy and Coast Guard projects. In the same Economic Times report on the Bangladesh cancellation, GRSE’s management indicated it is targeting up to ₹70,000 crore from upcoming naval projects. [14]
The most prominent of these is the Next Generation Corvettes (NGC) project:
- On 22 May 2025, GRSE announced it had emerged as the Lowest (L1) bidder for the Indian Navy’s NGC project, valued at over ₹25,000 crore.
- The company is expected to be awarded five of the eight ships under this programme, subject to completion of formalities. [15]
If the NGC order is fully awarded, it would almost double the current order book and significantly extend revenue visibility into the next decade.
Strategic developments in 2025: MoUs, new yard plans and a small setback
2025 has been unusually busy for GRSE on the strategic front. Key developments:
1. Bangladesh contract cancellation – minor financial impact
As noted, Bangladesh cancelled a $21 million tug contract in May 2025 amid deteriorating diplomatic ties. While geopolitically significant, GRSE clarified that the order was just 0.8% of its March‑end 2025 order book, and that the financial impact would be negligible. [16]
The company’s focus has shifted to much larger domestic projects, particularly for the Indian Navy.
2. Next Generation Corvettes (NGC) – big domestic win
The NGC L1 status announced in May 2025 triggered a 4% intraday jump in GRSE shares to around ₹2,599 at that time. The project, valued at over ₹25,000 crore, is one of the largest naval surface‑combatant programmes in India and cements GRSE’s position among the country’s core warship yards. [17]
3. MoU with Kongsberg for India’s first Polar Research Vessel
On 4 June 2025, GRSE shares hit the 10% upper circuit at ₹3,464.8 after the company signed an MoU with Norway’s Kongsberg for the indigenous construction of India’s first Polar Research Vessel (PRV). [18]
The vessel will feature advanced scientific equipment for deep‑sea research and polar studies, expanding GRSE’s portfolio beyond conventional combat ships into high‑end research platforms — a niche with potential export and strategic value. [19]
4. Five MoUs under “Maritime Amrit Kaal” vision
On 22 September 2025, the stock jumped around 6% to an intraday high of ₹2,760 after GRSE announced five MoUs with:
- Deendayal Port Authority
- Syama Prasad Mookerjee Port Authority
- Indian Port Rail & Ropeway Corporation
- Shipping Corporation of India
- Modest Infrastructure
The MoUs cover green and low‑emission vessels, ship repair, port infrastructure development, multimodal logistics and ropeway connectivity, aligned with the government’s Maritime Amrit Kaal ambition to place India among the world’s top five shipbuilding nations by 2047. [20]
5. Greenfield shipyard in Andhra Pradesh – capacity expansion
Company filings compiled by Screener show that on 14 November 2025, GRSE signed a non‑binding MoU with the Andhra Pradesh Maritime Board for a greenfield shipyard project. [21]
If executed, a new yard on India’s east coast would significantly boost capacity for both defence and commercial vessels and could support long‑term execution of the NGC and other projects.
6. Small compliance blemish: exchange fines
On 29 November 2025, BSE and NSE imposed fines of ₹9,77,040 each on GRSE for board and committee non‑compliance, according to Screener’s summary of BSE announcements. GRSE has sought a waiver, and there is no financial materiality, but governance‑focused investors will watch how quickly the company regularises these issues. [22]
What kind of business is GRSE, exactly?
GRSE is under the administrative control of India’s Ministry of Defence and is one of the country’s premier warship builders. According to Mint and Screener, the company has:
- Built over 785 platforms, including 108 warships for the Indian Navy, Indian Coast Guard and export customers
- Three shipbuilding facilities clustered around Kolkata
- Divisions spanning shipbuilding, engineering (including prefabricated steel bridges and deck machinery) and engine production/overhaul, notably for MTU diesel engines. [23]
The business mix remains heavily skewed to the shipbuilding segment (≈89% of revenues) and overwhelmingly to government and PSU clients, which means low counterparty risk but high dependence on defence capex cycles and policy. [24]
Promoters (Government of India) hold 74.5%, with FII holdings around 3.26% and mutual funds about 1.75% as of September 2025. [25]
Fundamentals: high growth, high quality… and high valuation
From a fundamental standpoint, GRSE ticks many boxes that growth investors like:
- Near‑zero debt: Debt‑to‑equity ~0.0–0.01
- High profitability: ROE ~28%, ROCE ~36–37% in FY25
- Strong growth:
- 5‑year sales CAGR ~29%
- 5‑year profit CAGR ~25%
- TTM profit growth ~60%
- Consistent dividends: Dividend payout around 30% over the past few years. [26]
Screener’s automated “pros and cons” list highlights:
- Pros: almost debt‑free, strong multi‑year profit growth, healthy dividend payout, and expectations of good upcoming quarters.
- Cons: the stock trades at roughly 12x its book value, and a sizeable part of earnings includes other income (~₹327 crore over the last year), which investors often value at a discount versus core shipbuilding profits. [27]
On valuation, key points as of 8 December 2025:
- P/E: around 45–47x TTM, slightly below the defence/shipyard sector P/E of ~54x, according to Mint data.
- P/B: about 14x, somewhat higher than several peers. For instance, Mint shows Cochin Shipyard and Mazagon Dock at P/B multiples in the high single to low‑double digits. [28]
In short: earnings power and balance sheet quality look strong, but a lot of optimism is already priced in, which makes the stock sensitive to any negative surprises in orders, execution, or policy.
Analyst and model forecasts: what the 12‑month targets say
There is no single “official” target price, but multiple data providers and brokerages have published forecasts and ratings as of late 2025.
Aggregated analyst targets
- Mint (LiveMint) broker data:
- Tracks 3 analysts on GRSE.
- Rating mix: 2 “strong buy”, 1 “strong sell”, with the average rating showing as “Buy” in their system. [29]
- TradingView forecast page:
- Shows a 1‑year average price target of ₹2,915.67 per share.
- Based on 3 analysts, with a high estimate of ₹3,500 and low of ₹2,200. [30]
- AlphaSpread (Wall Street target summary):
- Reports an average 12‑month target of ₹2,973.98,
- Low forecast: ₹2,222
- High forecast: ₹3,675
- Implies roughly 23% upside from a spot price near ₹2,400. [31]
Indian brokerage reports (Trendlyne summary)
Trendlyne’s research‑report scraper shows: [32]
- A consensus target of about ₹2,354 in its 8 December 2025 summary table (slightly below current price, though labelled ‘buy’ in the interface).
- ICICI Direct reports in August and November 2025 with a “Hold” rating and targets in the ₹2,645–2,950 range.
- FundsIndia (September 2025) has a “Buy” rating with a target of ₹3,097.
Older reports (e.g., an August 2024 “Sell” recommendation at a much lower target) are increasingly less relevant now that earnings and the order book have scaled up. [33]
Key takeaway from forecasts
Putting these together, most 12‑month fair‑value estimates cluster between roughly ₹2,350 and ₹3,000, with outliers up to about ₹3,675. From today’s level near ₹2,400:
- Some domestic broker targets have been met or exceeded already and are now being revisited.
- Global/aggregator models still see a potential 20–25% upside over 12 months if execution and defence spending remain on track. [34]
These are not guarantees; they are scenario‑based estimates that can change quickly with new orders, cost overruns or macro shocks.
Technical outlook: correction phase, but long‑term trend still up
Short‑term technical indicators have turned cautious after the recent slide.
The technical site StockInvest.us downgraded GRSE on 5 December 2025 from “Hold/Accumulate” to a “Sell candidate” after: [35]
- A 3.14% fall that day (to ₹2,470.90)
- Five consecutive down days and declines in seven of the last 10 sessions
- A total drop of ~12.3% over that 10‑day period, on rising volume
Their model notes:
- Both short‑ and long‑term moving averages currently give sell signals.
- The stock is oversold on RSI14, which often precedes short‑term bounces but can stay oversold for some time.
- Support from volume is seen near ₹2,440, with resistance around ₹2,580–2,600.
- Despite the downgrade, the model still projects a statistical rise of about 7.7% over the next three months, with a 90% probability range between roughly ₹2,660 and ₹3,170. [36]
On top of this, the Economic Times “concurrent losers” screen highlights GRSE’s ~12% five‑day fall from a previous close around ₹2,471, suggesting a classic pullback after a strong run rather than a stock‑specific crisis. [37]
Mint’s risk metrics show a beta of 1.74, categorising GRSE as high‑volatility relative to the broader market — big moves both up and down are part of the package. [38]
Key risks to keep in view
Investors and traders following GRSE should be aware of several structural risks:
- Order concentration in the Indian state
- The bulk of revenue comes from the Indian Navy and Coast Guard.
- Any delay in defence budgets, contract awards or payments can affect cash flows and valuations. [39]
- Execution and cost‑overrun risk
- Mega‑projects like the ₹25,000‑crore NGC order are complex, multi‑year endeavours with technical and contractual risks. [40]
- Geopolitical swings
- The Bangladesh cancellation shows how quickly external orders can be impacted by geopolitics, even if immediate financial damage is small. [41]
- Valuation sensitivity
- Trading at mid‑40s P/E and mid‑teens P/B, GRSE is priced as a high‑quality growth stock. Any slowdown in order inflows or margin compression could trigger a larger‑than‑market correction. [42]
- Governance and compliance
- Exchange fines for board/committee non‑compliance are minor financially, but repeat issues would not sit well with institutional investors. [43]
Bottom line: a high‑quality defence shipyard at a volatile crossroads
As of 8 December 2025, GRSE sits at an interesting juncture:
- Fundamentals look strong – double‑digit revenue and profit growth, high ROE, near‑zero debt and a multi‑year defence order book.
- Strategic tailwinds are real – NGC L1 status, MoUs for green and polar vessels, and plans for a new shipyard all point to scaled‑up operations over the next decade. [44]
- But valuation and technicals are demanding – after a big multi‑year rally and a 50%+ YTD gain, the stock is consolidating with an 11–12% short‑term correction, and several technical models now flag near‑term downside risk. [45]
Consensus 12‑month price targets from various platforms cluster in the ₹2,350–3,000 range, with some models suggesting 20–25% potential upside from current levels if execution remains on track. But the same high beta that amplified past gains can magnify any future drawdowns. [46]
For long‑term observers of India’s defence and shipbuilding story, GRSE has become one of the bellwether stocks to watch — both as a proxy for “Atmanirbhar” naval modernisation and as a live case study in how markets price state‑backed, high‑growth but capital‑intensive defence businesses.
References
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