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The shares of Garden Reach Shipbuilders & Engineers (GRSE) are up nearly 10.4 per cent today (May 22, 2025), after the company bagged a whopping Rs 25,000 crore order as part of the Indian Navy's Next Generation Corvettes (NGC) project.
What else has set the GRSE share price on fire
The Navy deal couldn't have come at a better time. GRSE's Q4 FY25 results were already strong, with net profit zooming 119 per cent YoY to Rs 244 crore, and revenue rising 62 per cent to Rs 1,644 crore. Full-year profit came in at Rs 527 crore, up 48 per cent from the previous year.
Now, throw in this mega contract, and you have a stock that's firing on all cylinders.
What GRSE does
Headquartered in Kolkata, GRSE is a defence PSU that builds warships for the Indian Navy and Coast Guard. It also makes marine engines, deck machinery and modular bridges.
Below is a summary of the company's fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 30,116 crore |
| ROE | 23.1 per cent |
| ROCE | 28.9 per cent |
| P/E ratio | 57.1 |
| P/B ratio | 14.5 |
| Dividend yield | 0.5 per cent |
| Book value | Rs 181.5 |
| EPS | Rs 46 |
What Value Research says
Here's a quick look at GRSE's stock ratings on Value Research Online:
-
Overall:
3/5
-
Quality:
8/10
-
Growth:
6/10
-
Valuation:
1/10
- Momentum: 10/10
While the company looks strong on quality and momentum, that valuation score is a red flag.
The final word
There's no denying GRSE is riding a strong wave, backed by defence tailwinds, strong quarterly results and a high order book.
But when a stock starts pricing in future gains too early, reality checks can hurt.
If you're in it for the long haul and believe in India's defence manufacturing story, GRSE deserves a spot on your radar. Just don't chase it blindly on the news flow.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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