Garden Reach Shipbuilders & Engineers (GRSE) was listed on the NSE and BSE on October 10, 2018. In the last five years, its stock has given a massive return of around 1100% to its investors. Will GRSE continue to provide such great returns in the future as well? Let’s explore GRSE’s future growth potential and the GRSE share price target 2025 to 2050 in this article.
About GRSE
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is an Indian shipbuilding company founded in 1884. It is headquartered in Kolkata, and it is a major shipyard company in the country. GRSE is well-known for building warships for the Indian Navy and Coast Guard and other commercial and export purposes. It became a government-owned company in 1960 and has since played an important role in strengthening India’s naval defence.
GRSE Business Model
- Shipbuilding Contracts: GRSE builds warships, patrol vessels, and other ships for the Indian Navy, Coast Guard, and other clients.
- Ship Repairs & Maintenance: The company provides repair and maintenance services for ships.
- Engineering Products: GRSE manufactures portable bridges, deck machinery, and other engineering products for defence and civil use.
- Commercial Shipbuilding: Apart from defence projects, GRSE also builds ships for private and commercial use.
GRSE Fundamental Analysis
| Stock Name | GRSE Ltd. |
|---|---|
| NSE Symbol | GRSE |
| Market Cap | ₹ 22084 Cr. |
| 52W High | ₹ 2835 |
| 52W Low | ₹ 881 |
| Stock P/E | 55.9 |
| Book Value | ₹ 161 |
| Dividend Yield | 0.49 % |
| ROCE | 27.4% |
| ROE | 22.2 % |
| Face Value | ₹ 10.0 |
| Industry PE | 50.1 |
| Price to book value | 12.0 |
| Debt to equity | 0.01 |
| PEG Ratio | 2.19 |
| Quick ratio | 0.68 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 74.50% | 74.50% | 74.50% |
| FIIs | 2.68% | 3.26% | 3.85% |
| DIIs | 7.91% | 6.14% | 1.90% |
| Public | 14.91% | 16.10% | 19.76% |
| No. of Shareholders | 60,638 | 1,25,631 | 4,13,986 |
Key Factors Driving GRSE’s Future Growth
- Strong Order Book & Government Support: GRSE has many pending orders from the Indian Navy and Coast Guard. Also, the Indian government’s “Make in India” initiative and focus on defence manufacturing further support GRSE’s growth.
- Modern Shipbuilding & Skilled Workforce: GRSE has upgraded its shipyards with advanced technology, allowing faster and more efficient ship production.
- Export & Diversification Strategy: GRSE is expanding its reach by exporting warships to friendly foreign nations. It is also building other things like ferries and survey ships, reducing dependency on just defence contracts.
- Rising Demand for Warships: As global tensions rise, India and other nations are strengthening their navies, increasing demand for GRSE’s ships.
Pros of Investing in GRSE
- Consistent Dividend Payout: GRSE has maintained a healthy dividend payout ratio of 32.1%.
- Strong Sales Growth: GRSE sales have grown at a CAGR of 47% over the last three years.
- Strong Profit Growth: GRSE profits have grown at a CAGR of 29% over the last three years.
- High Return on Capital Employed (ROCE): GRSE 5yrs average ROCE is 22.2% which shows that it is utilizing its capital effectively to generate profits.
- Debt Free Company: GRSE is almost a debt-free company with a debt to equity ratio of 0.01, which shows its financial stability.
- High Promoter Holding: GRSE has a strong promoter holding of 74.5%, which shows the high confidence of promoters in the company’s future growth and stability.
- Increase in Institutional Confidence: DIIs have increased their holding to 1.90% in March 2025 from 1.87% in December 2024, while FIIs have increased their holding to 3.85% in March 2025 from 3.71% in December 2024, indicating a strong institutional confidence in the GRSE’s future growth prospects.
Cons of Investing in GRSE
- Dependence on the Defence Sector: Most of GRSE’s money comes from the defence sector. If the government reduces spending on defence, it could affect GRSE’s business and profits.
- Overvaluation Concern: GRSE stock is trading at a PE ratio of 55.9 and a (P/B) ratio of 12.0, which shows that its stock is significantly overvalued compared to its earnings and assets.
GRSE Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 115 | 115 | 115 |
| Reserves | 1,299 | 1,559 | 1,728 |
| Borrowings | 312 | 66 | 10 |
| Other Liabilities | 9,057 | 8,524 | 8,207 |
| Total Liabilities | 10,783 | 10,263 | 10,059 |
| Fixed Assets | 508 | 493 | 502 |
| CWIP | 6 | 25 | 15 |
| Investments | 234 | 0 | 187 |
| Other Assets | 10,036 | 9,746 | 9,354 |
| Total Assets | 10,783 | 10,263 | 10,059 |
By the end of 2025, the GRSE share price is expected to be around ₹2100 in normal conditions. In a bear market, it might be ₹1600, and in a bull market, it go upto ₹2990.
| GRSE Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 1600 |
| 2nd Target | 2100 |
| 3rd Target | 2990 |
In 2026, the GRSE share price is expected to be around ₹2970 in a normal situation. In a bear market, it might be ₹2890, and in a bull market, it may cross ₹3885.
| GRSE Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 2890 |
| 2nd Target | 2970 |
| 3rd Target | 3885 |
According to our analysis, the GRSE share price is expected to be around ₹3600 in 2027. In a bear market, it might be ₹3470, and in a bull market, it may cross ₹5050.
| GRSE Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 3470 |
| 2nd Target | 3600 |
| 3rd Target | 5050 |
According to our analysis, the GRSE share price may trade near ₹4350 by 2028; bearish conditions could pull it down to ₹4160, while a strong bull run might lift it to ₹6565.
| GRSE Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 4160 |
| 2nd Target | 4350 |
| 3rd Target | 6565 |
In a normal situation, the GRSE share price is projected to be approximately ₹5500 in 2029. In a bear market, the value may be as low as ₹4990, while in a bull market, it may rise to ₹8535.
| GRSE Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 4990 |
| 2nd Target | 5500 |
| 3rd Target | 8535 |
In a normal situation, the GRSE share price is projected to be approximately ₹7500 in 2030. In a bear market, the value may be as low as ₹5990, while in a bull market, it may rise to ₹11,000.
| GRSE Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 5990 |
| 2nd Target | 7500 |
| 3rd Target | 11,000 |
By 2035, the GRSE share price is projected to be around ₹15500 under normal conditions. In adverse markets, the price could fall to ₹11990, while favourable conditions might push it up to ₹33290.
| GRSE Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 11990 |
| 2nd Target | 15500 |
| 3rd Target | 33290 |
Under normal conditions, the GRSE share price might hit ₹26500 by 2040. A bearish trend could lower it to ₹23990, whereas a bullish surge could raise it to ₹99,500.
| GRSE Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 23990 |
| 2nd Target | 26500 |
| 3rd Target | 99500 |
In 2050, the GRSE share price is expected to be around ₹1,20,000 in a normal situation. In a bear market, it might be ₹95,000, and in a bull market, it may go up to ₹5,90,000.
| GRSE Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 95,000 |
| 2nd Target | 1,20,000 |
| 3rd Target | 5,90,000 |
| Years | Target 1 | Target 2 | Target 3 |
|---|---|---|---|
| GRSE Share Price Target 2025 | ₹ 1600 | ₹ 2100 | ₹ 2990 |
| GRSE Share Price Target 2026 | ₹ 2890 | ₹ 2970 | ₹ 3885 |
| GRSE Share Price Target 2027 | ₹ 3470 | ₹ 3600 | ₹ 5050 |
| GRSE Share Price Target 2028 | ₹ 4160 | ₹ 4350 | ₹ 6565 |
| GRSE Share Price Target 2029 | ₹ 4990 | ₹ 5500 | ₹ 8535 |
| GRSE Share Price Target 2030 | ₹ 5990 | ₹ 7500 | ₹ 11,000 |
| GRSE Share Price Target 2035 | ₹ 11990 | ₹ 15500 | ₹ 33290 |
| GRSE Share Price Target 2040 | ₹ 23990 | ₹ 26500 | ₹ 99500 |
| GRSE Share Price Target 2050 | ₹ 95,000 | ₹ 1,20,000 | ₹ 5,90,000 |
Conclusion
GRSE has delivered impressive returns over the years, backed by strong government support, a strong order book, and solid fundamentals. The company’s focus on modernising shipbuilding, expanding exports, and maintaining a debt-free status makes it a promising investment. However, since most of its revenue depends on defence contracts, any change in government spending could impact its growth. While the stock has strong potential, some experts believe it might be overvalued. Investors should carefully consider the risks and rewards before investing. For the latest updates, you can check the GRSE official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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