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  4. /Garden Reach Shipbuilders & Engineers Ltd
MomentumDeep Value

Garden Reach Shipbuilders & Engineers Ltd: Is It a Deep Value Opportunity?

AverageAccelerating

As of Jun 5, 2026, Garden Reach Shipbuilders & Engineers Ltd (Ship - Docks/Breaking/Repairs) has a deep value score of 43/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -20%.

Garden Reach Shipbuilders & Engineers Ltd Key Facts

PE Ratio
40.9x
Market Cap
₹30,621 Cr
Value Score
43/100
PAT Growth YoY
+24%
Revenue Growth YoY
+29%
OPM
17.0%
PE: Mid ExpansionStrong Opportunity

What's Happening

💎PE falling while earnings hold — value emerging
💪Debt reduced 14% YoY — balance sheet strengthening

Key Risks

1. Regulatory
MEDIUM
2. Commodity
LOW
3. Labor
LOW

Key Numbers

PAT Growth YoY
+24%
Stable
Revenue YoY
+29%
Stable
Operating Margin
17.0%
+400 bps YoY
PE Ratio
40.9
PEG Ratio
1.09
Current Price
₹2,673
Dividend Yield
0.52%
3Y PAT CAGR
+49%
Market Cap
30.5K Cr
Valuation
N/A

What Are the Key Risks for Garden Reach Shipbuilders & Engineers Ltd?

Earnings deceleration risks from management commentary

Regulatory

MEDIUM

Trigger: Defence procurement timelines have historically extended 1.5x to 2x initial estimates; any delay in NGC signing pushes revenue accrual from Q4 FY28 further out and delays order book replenishment

Monitor: regulatory

Commodity

LOW

Trigger: Steel is only ~35% of project cost and partially hedged via procurement MOUs; equipment costs are customer-nominated and pre-agreed at contract start

Monitor: commodity

Labor

LOW

Trigger: Scale from 28 to 35+ concurrent platforms over 12-18 months with Gujarat expansion in 3-5 years requires execution capability well beyond current base; skilled workforce availability in shipbuilding is a sector-wide constraint

Monitor: labor

Geopolitical

LOW

Trigger: Positive geopolitical tailwind from China de-risking by European buyers; risk is upside opportunity not being captured due to capacity — not a downside risk to existing business

Monitor: geopolitical

What Is Garden Reach Shipbuilders & Engineers Ltd's Management Saying?

Key quotes from recent conference calls

“It requires certain approvals, but we are confident of this contract getting concluded during the current financial year, which means next month [Risk (regulatory): MEDIUM]”
“Commodity price increase has got minimal impact on our margins, because in our case, in a project, if you take 100% as a project cost, around 65% come out of equipment [Risk (commodity): LOW]”
“we are inducting another 150 executives, 137 executives. And all of them, I can assure you, come from top institutions of the country [Risk (labor): LOW]”
“Most of the European countries, be it Netherlands, be it Germany, be it Sweden, be it Norway, they are actually looking at India. Most of the customers who approached us and Belgium [Risk (geopolitical): LOW]”

How Fast Is Garden Reach Shipbuilders & Engineers Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+29%+40%Stable
PAT (Net Profit)+24%+49%Stable
OPM17.0%+400 bpsVolatile

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.

Other Deep Value Stocks in Ship - Docks/Breaking/Repairs

Mazagon Dock Shipbuilders Ltd
Weak
37
← Back to Ship - Docks/Breaking/RepairsAll Deep Value SectorsDashboard

Frequently Asked Questions: Garden Reach Shipbuilders & Engineers Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What is Garden Reach Shipbuilders & Engineers Ltd's deep value score?

Garden Reach Shipbuilders & Engineers Ltd has a deep value score of 43/100 (rated Average). This score is calculated from three components

  • Earnings Score: 36/40 — measures PAT growth momentum across quarters
  • Underperformance Score: 11/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
  • Quality Score: 13/25 — operational quality (margins, revenue growth, valuation)

Is Garden Reach Shipbuilders & Engineers Ltd fundamentally improving?

Garden Reach Shipbuilders & Engineers Ltd's quarterly profit (PAT) growth trajectory

  • Latest Quarter PAT Growth (QoQ): +78%
  • Previous Quarter PAT Growth (QoQ): +11%
  • 2 Quarters Ago PAT Growth (QoQ): +28%
  • PAT Acceleration: +24.8pp (profits are accelerating)
  • 3 consecutive quarters of positive PAT growth

Why is Garden Reach Shipbuilders & Engineers Ltd underperforming despite good earnings?

Garden Reach Shipbuilders & Engineers Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

  • 1-Year Return vs Nifty 500: -20%
  • 6-Month Return vs Nifty 500: +13%
  • 3-Month Return vs Nifty 500: +11%
  • Yet average quarterly PAT growth is +39% — earnings are improving
  • The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

What is the earnings momentum for Garden Reach Shipbuilders & Engineers Ltd?

Garden Reach Shipbuilders & Engineers Ltd's earnings momentum is Accelerating — profit growth is speeding up.

  • PAT QoQ progression: +28% → +11% → +78% (2Q ago → 1Q ago → latest)
  • Acceleration: +24.8pp
  • PAT YoY Growth: +24%

Is Garden Reach Shipbuilders & Engineers Ltd undervalued?

Garden Reach Shipbuilders & Engineers Ltd's valuation metrics

  • Price-to-Earnings (PE): 40.7x
  • Price-to-Book (PB): 11.6x
  • PEG Ratio: 1.1x

What are the revenue and margin trends for Garden Reach Shipbuilders & Engineers Ltd?

Garden Reach Shipbuilders & Engineers Ltd's revenue and margin trends

  • Latest Quarter Revenue Growth (QoQ): +12%
  • Average Quarterly Revenue Growth: +18%
  • Revenue Acceleration: -8.1pp
  • Latest OPM Change: +7.7pp (margins expanding)
  • Average OPM Change: +2.7pp
  • Revenue YoY: +29%

What is Garden Reach Shipbuilders & Engineers Ltd's trailing twelve month (TTM) performance?

Garden Reach Shipbuilders & Engineers Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹748 Cr
  • TTM PAT Growth: +41.9% YoY
  • TTM Revenue: ₹7,000 Cr
  • TTM Revenue Growth: +37.9% YoY
  • TTM Operating Margin: 11.4%

What sector does Garden Reach Shipbuilders & Engineers Ltd belong to?

Garden Reach Shipbuilders & Engineers Ltd key facts

  • Sector: Ship - Docks/Breaking/Repairs
  • Market Cap: ₹30.5K Cr
  • Rank in Ship - Docks/Breaking/Repairs: #1 by value score
  • Overall rank among all deep value stocks: #43

Is Garden Reach Shipbuilders & Engineers Ltd a good deep value opportunity to study?

Garden Reach Shipbuilders & Engineers Ltd shows limited deep value signals currently — score is 43/100 (Average). Monitor for improvement.

  • Value Score: 43/100 (Average)
  • Earnings: Accelerating
  • 1Y Underperformance: -20% vs Nifty 500

What is the bull and bear case for Garden Reach Shipbuilders & Engineers Ltd?

Research Signals (Bull Case)

  • Earnings accelerating — profit growth speeding up
  • 3 consecutive quarters of positive PAT growth
  • Operating margins expanding

Which other Ship - Docks/Breaking/Repairs stocks are deep value opportunities?

Other deep value stocks in Ship - Docks/Breaking/Repairs

  • Mazagon Dock Shipbuilders Ltd — Score 37/100, Weak

How does the Ship - Docks/Breaking/Repairs sector look for deep value?

Ship - Docks/Breaking/Repairs deep value sector overview

  • 2 deep value stocks in this sector
  • Average value score: 40/100
  • Avg PAT acceleration: -11.0pp
  • Top pick: Garden Reach Shipbuilders & Engineers Ltd

What is deep value investing?

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

How is the deep value score calculated?

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.

What are the key risks in Garden Reach Shipbuilders & Engineers Ltd?

Garden Reach Shipbuilders & Engineers Ltd has 4 key risks worth monitoring

  • Regulatory
  • Commodity
  • Labor
  • Geopolitical

What did Garden Reach Shipbuilders & Engineers Ltd's management say in the latest earnings call?

In Q3 FY26, Garden Reach Shipbuilders & Engineers Ltd's management highlighted

  • "It requires certain approvals, but we are confident of this contract getting concluded during the current financial year, which means next month [Ris..."
  • "Commodity price increase has got minimal impact on our margins, because in our case, in a project, if you take 100% as a project cost, around 65% come..."
  • "we are inducting another 150 executives, 137 executives. And all of them, I can assure you, come from top institutions of the country [Risk (labor): ..."

The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.