Multibagger Defence Stock: GRSE Surges 32% in Five Sessions – Analyst Insights & Future Growth
Business and Industry Overview:
Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a big shipyard in India. It is located in Kolkata. The company builds and repairs ships for the Indian Navy, Coast Guard, and other customers. It was started in 1884 as a private company. The Indian government took control of it in 1960. GRSE became the first Indian shipyard to build 100 warships. It is an important part of India’s defense industry. The company has modern facilities to design and build ships.
GRSE has a large shipyard in Kolkata. It also has a diesel engine plant in Ranchi. The shipyard has special tools and equipment to build, repair, and test ships. It has a dry dock to repair big ships. It also has slipways and berths to build new ships. GRSE makes different types of ships. These include warships, patrol boats, research ships, cargo ships, and tugboats. The company also exports ships to other countries. It has delivered ships to Mauritius, Bangladesh, and Vietnam. GRSE has partnered with global companies like Rolls-Royce to make marine engines in India.
GRSE is working on many big projects. It is building new warships for the Indian Navy. These include anti-submarine warfare ships, patrol vessels, and survey ships. The company is also making research ships to study the ocean. It has received orders from foreign countries to build patrol boats, tugboats, and dredgers. GRSE is growing by getting new contracts from India and abroad. It also repairs and upgrades old ships to make them last longer. The company is helping India become stronger in defense and trade.
India’s defence and shipbuilding industry is growing fast. The government wants India to make its warships, submarines, and weapons instead of buying them from other countries. This is part of the “Make in India” and “Atmanirbhar Bharat” (Self-Reliant India) programs. The government is spending more money to develop this industry.
Many companies are working in this sector. Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock Shipbuilders, and Cochin Shipyard build ships for the Indian Navy and Coast Guard. Private companies like Larsen & Toubro (L&T) are also helping. India is now exporting warships and weapons to countries like Vietnam and Sri Lanka.
Recently, defence stocks increased in value. On March 20, 2025, Germany decided to spend more on defence. This made Indian defence stocks rise sharply. GRSE’s stock jumped by 20%. Other companies like Mazagon Dock, Cochin Shipyard, and Bharat Dynamics also gained. The Nifty India Defence Index, which tracks defence stocks, increased by 4.9%. Experts believe India will get more business as European countries buy more defence equipment.
GRSE is a government company that builds warships, boats, and other vessels for the Indian Navy and Coast Guard. It has been making ships for many years and has completed over 100 warships. The company gets many projects from the government, which gives it a steady income. It also sells ships to other countries like Sri Lanka, Bangladesh, and Myanmar. GRSE is using modern technology to make better and more advanced ships. It recently built an electric ferry and modular steel bridges, which help it grow. The company faces competition from private companies like L&T and foreign shipbuilders. To stay strong, GRSE needs to improve its technology, expand its business, and sell more ships to other countries. GRSE is also building steel bridges in different parts of India. These bridges will improve road connectivity. The defence and shipbuilding industry will continue to grow as India builds more warships and exports them to other countries.
Latest Stock News:
Recently, its stock price increased by over 6% after the company signed an agreement with the Public Works Department (PWD) of Nagaland. Under this agreement, GRSE will supply eight double-lane modular steel bridges to the state. This is the first time GRSE has partnered with Nagaland for such a project. The agreement was signed in Kohima in the presence of senior officials from both GRSE and PWD Nagaland.
GRSE has a strong history of building modular steel bridges. It has supplied over 5,800 bridges to different organizations, including the Border Roads Organisation (BRO) and the National Highway Infrastructure Development Corporation Ltd (NHIDCL). The company has also exported bridges to countries like Bhutan, Nepal, Myanmar, Sri Lanka, and Bangladesh. These bridges are useful for improving road connectivity in difficult terrains.
The stock price of GRSE has been rising for five consecutive days. In the past five days alone, the stock has increased by 31%. Over the last year, it has given a return of 127% to investors. In the past five years, the stock has surged by a massive 1125%. The stock hit a low of ₹744 last year and a high of ₹2834.60.
Experts believe the stock may continue to rise. Some analysts predict that if it stays above ₹1,750, it could reach ₹2,000 or even ₹2,200. However, there is also a chance of a price correction. If the stock falls below ₹1,575, it could lose momentum. Investors are advised to be cautious and manage risks properly.
Potentials:
Garden Reach Shipbuilders & Engineers (GRSE) has strong flans to grow its business and expand its reach. The company is currently building 18 advanced warships for the Indian Navy, showing its important role in the defense sector. GRSE is also focusing on clean energy by installing solar power systems, which will help reduce electricity costs and support sustainability. It is manufacturing hybrid ferries for the West Bengal government, which will use both electricity and fuel to lower pollution and improve efficiency. Additionally, GRSE has signed an agreement with a German company to build specialized ships, marking its entry into the international market. The company is also increasing production of modular steel bridges for quick infrastructure development in remote areas. With these steps, GRSE aims to strengthen its position in the defense and shipbuilding industry, promote green energy, and expand its business beyond India.
Analyst Insights:
- Market capitalisation:₹ 19,418 Cr.
- Current Price: ₹ 1,695
- 52-Week High/Low: ₹ 2,835 / 757
- Stock P/E: 29.6
- Dividend Yield: 49.1
- Return on Capital Employed (ROCE): 27.4 %
- Return on Equity: 22.2 %
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is performing well. Revenue grew by 32% YoY to ₹1,052 Cr in Q3 FY24. This happened because the company delivered more ships. Net profit increased by 27% YoY to ₹110 Cr, showing better earnings. The company has a huge order book of ₹23,061 Cr, which means steady work in the future. EBITDA margin is 12%, showing good profit. GRSE has zero debt, making it financially strong. But it has contingent liabilities of ₹6,508 Cr, which is a risk. Since India’s defense sector is growing, GRSE looks good for long-term investment.