Garden Reach Shipbuilders & Engineers Limited

NSEI:GRSE Stock Report

Market Cap: ₹161.4b

Garden Reach Shipbuilders & Engineers Valuation

Is GRSE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GRSE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRSE (₹1409.25) is trading above our estimate of fair value (₹209.66)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRSE?

Key metric: As GRSE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GRSE. This is calculated by dividing GRSE's market cap by their current earnings.
What is GRSE's PE Ratio?
PE Ratio42x
Earnings₹3.85b
Market Cap₹161.43b

Price to Earnings Ratio vs Peers

How does GRSE's PE Ratio compare to its peers?

The above table shows the PE ratio for GRSE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63x
DATAPATTNS Data Patterns (India)
69.3x24.8%₹128.3b
PARAS Paras Defence and Space Technologies
86.9xn/a₹39.4b
BDL Bharat Dynamics
64x22.4%₹354.2b
MAZDOCK Mazagon Dock Shipbuilders
32x-2.0%₹822.0b
GRSE Garden Reach Shipbuilders & Engineers
42x16.1%₹161.4b

Price-To-Earnings vs Peers: GRSE is good value based on its Price-To-Earnings Ratio (42x) compared to the peer average (63x).

Price to Earnings Ratio vs Industry

How does GRSE's PE Ratio compare vs other companies in the Asian Aerospace & Defense Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GRSE 42.0xIndustry Avg. 47.9xNo. of Companies8PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GRSE is good value based on its Price-To-Earnings Ratio (42x) compared to the Asian Aerospace & Defense industry average (47.9x).

Price to Earnings Ratio vs Fair Ratio

What is GRSE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRSE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42x
Fair PE Ratio40.3x

Price-To-Earnings vs Fair Ratio: GRSE is expensive based on its Price-To-Earnings Ratio (42x) compared to the estimated Fair Price-To-Earnings Ratio (40.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GRSE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,409.25
₹1,149.00
-18.5%
55.2%₹1,783.00₹515.00n/a2
Nov ’25₹1,610.50
₹1,303.50
-19.1%
60.5%₹2,092.00₹515.00n/a2
Oct ’25₹1,708.10
₹1,303.50
-23.7%
60.5%₹2,092.00₹515.00n/a2
Sep ’25₹1,811.00
₹738.50
-59.2%
30.3%₹962.00₹515.00n/a2
Aug ’25₹2,350.30
₹738.50
-68.6%
30.3%₹962.00₹515.00n/a2
Jul ’25₹2,306.50
₹738.50
-68.0%
30.3%₹962.00₹515.00n/a2
Jun ’25₹1,369.40
₹738.50
-46.1%
30.3%₹962.00₹515.00n/a2
May ’25₹989.05
₹731.00
-26.1%
31.6%₹962.00₹500.00n/a2
Apr ’25₹807.40
₹731.00
-9.5%
31.6%₹962.00₹500.00n/a2
Mar ’25₹817.85
₹752.50
-8.0%
33.6%₹1,005.00₹500.00n/a2
Feb ’25₹920.10
₹722.50
-21.5%
39.1%₹1,005.00₹440.00n/a2
Jan ’25₹873.80
₹716.50
-18.0%
38.6%₹993.00₹440.00n/a2
Dec ’24₹836.00
₹716.50
-14.3%
38.6%₹993.00₹440.00n/a2
Nov ’24₹735.10
₹651.00
-11.4%
37.5%₹993.00₹440.00₹1,610.503
Oct ’24₹841.10
₹631.33
-24.9%
34.3%₹934.00₹440.00₹1,708.103
Sep ’24₹815.75
₹631.33
-22.6%
34.3%₹934.00₹440.00₹1,811.003
Aug ’24₹624.30
₹503.00
-19.4%
20.4%₹619.00₹370.00₹2,350.303
Jul ’24₹575.30
₹503.00
-12.6%
20.4%₹619.00₹370.00₹2,306.503
Jun ’24₹456.40
₹503.00
+10.2%
20.4%₹619.00₹370.00₹1,369.403
May ’24₹462.50
₹452.50
-2.2%
14.9%₹520.00₹385.00₹989.052

Analyst Forecast: Target price is lower than the current share price.

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