NSEI:GRSE

Stock Analysis Report

Garden Reach Shipbuilders & Engineers

Executive Summary

Garden Reach Shipbuilders & Engineers Limited operates as a shipbuilding company in India.


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has Garden Reach Shipbuilders & Engineers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRSE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

GRSE

0.9%

IN Aerospace & Defense

-1.2%

IN Market


1 Year Return

102.4%

GRSE

9.1%

IN Aerospace & Defense

6.4%

IN Market

Return vs Industry: GRSE exceeded the Indian Aerospace & Defense industry which returned 9.1% over the past year.

Return vs Market: GRSE exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

GRSEIndustryMarket
7 Day-6.7%0.9%-1.2%
30 Day-16.6%-16.4%-3.6%
90 Day-15.3%-14.1%-0.5%
1 Year114.0%102.4%13.4%9.1%8.4%6.4%
3 Yearn/a-14.2%-16.2%20.9%14.3%
5 Yearn/a-2.8%-6.2%29.8%18.0%

Price Volatility Vs. Market

How volatile is Garden Reach Shipbuilders & Engineers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Garden Reach Shipbuilders & Engineers undervalued compared to its fair value and its price relative to the market?

13.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRSE (₹171.45) is trading above our estimate of fair value (₹60.65)

Significantly Below Fair Value: GRSE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRSE is poor value based on its PE Ratio (13.3x) compared to the Aerospace & Defense industry average (11.5x).

PE vs Market: GRSE is poor value based on its PE Ratio (13.3x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRSE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRSE is good value based on its PB Ratio (1.9x) compared to the IN Aerospace & Defense industry average (1.9x).


Next Steps

Future Growth

How is Garden Reach Shipbuilders & Engineers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Garden Reach Shipbuilders & Engineers has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Garden Reach Shipbuilders & Engineers performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRSE has high quality earnings.

Growing Profit Margin: GRSE's current net profit margins (10.1%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: GRSE's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: GRSE's earnings growth over the past year (14.3%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: GRSE earnings growth over the past year (14.3%) underperformed the Aerospace & Defense industry 33.5%.


Return on Equity

High ROE: GRSE's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Garden Reach Shipbuilders & Engineers's financial position?


Financial Position Analysis

Short Term Liabilities: GRSE's short term assets (₹51.0B) exceed its short term liabilities (₹45.0B).

Long Term Liabilities: GRSE's short term assets (₹51.0B) exceed its long term liabilities (₹997.4M).


Debt to Equity History and Analysis

Debt Level: GRSE's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: GRSE's debt to equity ratio has increased from 0.6% to 3.5% over the past 5 years.

Debt Coverage: GRSE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GRSE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GRSE has a low level of unsold assets or inventory.

Debt Coverage by Assets: GRSE's debt is covered by short term assets (assets are 137.7x debt).


Next Steps

Dividend

What is Garden Reach Shipbuilders & Engineers's current dividend yield, its reliability and sustainability?

4.05%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%0.6%markettop25%2.6%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GRSE's dividend (4.05%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: GRSE's dividend (4.05%) is in the top 25% of dividend payers in the Indian market (2.63%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GRSE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GRSE's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), GRSE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Vipin Saxena (57yo)

2.9yrs

Tenure

₹4,977,000

Compensation

Rear Admiral Vipin Kumar Saxena, IN (Retired) is Chairman and Managing Director of Garden Reach Shipbuilders & Engineers Limited since March 1, 2017 and is responsible for the overall management of Company ...


CEO Compensation Analysis

Compensation vs Market: Vipin's total compensation ($USD69.30K) is below average for companies of similar size in the Indian market ($USD298.10K).

Compensation vs Earnings: Vipin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vipin Saxena
Chairman & MD2.9yrs₹4.98mno data
Sarvjit Dogra
CFO, Director of Finance & Whole Time Director5.2yrs₹4.97mno data
Sandeep Mahapatra
Company Secretary & Compliance Officer2.6yrs₹2.66mno data
Sanjeev Nayyar
Director of Shipbuilding & Whole Time Director2.2yrs₹4.43mno data
Abhaya Mahapatro
General Manager of HR & Administration0yrsno datano data
P. Hari
Whole Time Director & Director of Personnel0.3yrsno datano data
Surendra Kushwaha
Chief General Manager of Commercial & Corporate Planning0yrsno datano data
Arup Pal
Chief General Manager of Technical0yrsno datano data
Siddhartha Ray
Chief General Manager of Finance0yrsno datano data
M. Murthy
Chief General Manager of Commercial1.1yrsno datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Management: GRSE's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vipin Saxena
Chairman & MD2.9yrs₹4.98mno data
Sarvjit Dogra
CFO, Director of Finance & Whole Time Director5.2yrs₹4.97mno data
Sanjeev Nayyar
Director of Shipbuilding & Whole Time Director2.2yrs₹4.43mno data
P. Hari
Whole Time Director & Director of Personnel0.3yrsno datano data
Ashwani Mahajan
Government Nominee Director3.8yrsno datano data
Inder Paul Bali
Part-Time Non-Official Independent Director1.9yrs₹370.00kno data
Ajai Bhandari
Part-Time Non-Official Independent Director1.9yrs₹340.00kno data
Bharat Bhushan
Part-Time Non-Official Independent Director2.4yrs₹430.00kno data
Kanwaljit Deol
Part-Time Non-Official Independent Director2.4yrs₹460.00kno data
Biswapriya Roy Chowdhury
Part-Time Non-Official Independent Director1.5yrs₹160.00kno data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: GRSE's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Garden Reach Shipbuilders & Engineers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Garden Reach Shipbuilders & Engineers Limited
  • Ticker: GRSE
  • Exchange: NSEI
  • Founded: 1934
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: ₹19.823b
  • Shares outstanding: 114.55m
  • Website: https://www.grse.in

Number of Employees


Location

  • Garden Reach Shipbuilders & Engineers Limited
  • 43/46, Garden Reach Road
  • Kolkata
  • West Bengal
  • 700024
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRSENSEI (National Stock Exchange of India)YesEquity SharesININROct 2018
542011BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2018

Biography

Garden Reach Shipbuilders & Engineers Limited operates as a shipbuilding company in India. The company offers frigates, anti-submarine warfare corvettes, missile corvettes, landing ship tanks, landing craft utilities, survey vessels, fleet replenishment tankers, fast patrol vessels, offshore patrol vessels, inshore patrol vessels, WJ-FAC, hover crafts, and fast interceptor boats to the Indian Navy, Indian Coast Guard, MHA, and other governments. It also provides portable bridges, deck machinery items, marine pumps, anchor and mooring capstans, anchor windlass, boat davits, and rail less helo traversing systems. In addition, the company engages in the testing and overhauling of marine propulsion engines, as well as assembly of semi-knocked down units of diesel engines. Garden Reach Shipbuilders & Engineers Limited was incorporated in 1934 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:19
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.