Regulatory
MEDIUMTrigger: 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
Garden Reach Shipbuilders & Engineers Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +28.4%Average
In , Garden Reach Shipbuilders & Engineers Ltd (Ship - Docks/Breaking/Repairs) is outperforming Nifty 500 with +28.4% relative strength. Fundamentals: Average.
Garden Reach Shipbuilders & Engineers Ltd Key Facts
- PE Ratio
- 46.7x
- Market Cap
- ₹34,953 Cr
- PAT Growth YoY
- +24%
- Revenue Growth YoY
- +29%
- OPM
- 17.0%
- RS vs Nifty 500
- +28.4%
PE: Near PeakStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 14% YoY — balance sheet strengthening
Key Risks
1. Regulatory
MEDIUM2. Commodity
LOW3. Labor
LOWKey Numbers
PAT Growth YoY
+24%
Stable
Revenue YoY
+29%
Stable
Operating Margin
17.0%
+400 bps YoY
PE Ratio
46.7
Current Price
₹3,051
Dividend Yield
0.45%
Fundamental Score
49/100
Average
3Y PAT CAGR
+49%
Market Cap
35.0K Cr
Valuation
N/A12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Garden Reach Shipbuilders & Engineers Ltd?
Earnings deceleration risks from management commentary
Commodity
LOWTrigger: 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
LOWTrigger: 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
LOWTrigger: 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
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +29% | +40% | Stable |
| PAT (Net Profit) | +24% | +49% | Stable |
| OPM | 17.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Frequently Asked Questions: Garden Reach Shipbuilders & Engineers Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Garden Reach Shipbuilders & Engineers Ltd's latest quarterly results?
Garden Reach Shipbuilders & Engineers Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +24.2% (stable)
- Revenue Growth YoY: +29.0%
- Operating Margin: 17.0% (volatile)
Is Garden Reach Shipbuilders & Engineers Ltd's profit growing or declining?
Garden Reach Shipbuilders & Engineers Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +24.2% (latest quarter)
- PAT Growth QoQ: +77.2% (sequential)
- 3-Year PAT CAGR: +48.6%
- Trend: Stable — consistent growth pattern
What is Garden Reach Shipbuilders & Engineers Ltd's revenue growth trend?
Garden Reach Shipbuilders & Engineers Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +29.0%
- Revenue Growth QoQ: +11.8% (sequential)
- 3-Year Revenue CAGR: +39.8%
How is Garden Reach Shipbuilders & Engineers Ltd's operating margin trending?
Garden Reach Shipbuilders & Engineers Ltd's operating margin is volatile.
- Current OPM: 17.0%
- OPM Change YoY: +4.0% basis points
- OPM Change QoQ: +8.0% basis points
What is Garden Reach Shipbuilders & Engineers Ltd's 3-year profit and revenue CAGR?
Garden Reach Shipbuilders & Engineers Ltd's long-term compounding rates
- 3-Year Profit CAGR: +48.6%
- 3-Year Revenue CAGR: +39.8%
Is Garden Reach Shipbuilders & Engineers Ltd's growth accelerating or decelerating?
Garden Reach Shipbuilders & Engineers Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: -50.3% bps
- Sequential Acceleration: +39.0% bps
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 is Garden Reach Shipbuilders & Engineers Ltd's current PE ratio?
Garden Reach Shipbuilders & Engineers Ltd's current PE ratio is 46.7x.
- Current PE: 46.7x
- Market Cap: 35.0K Cr
- Dividend Yield: 0.45%
What is Garden Reach Shipbuilders & Engineers Ltd's price-to-book ratio?
Garden Reach Shipbuilders & Engineers Ltd's price-to-book ratio is 13.3x.
- Price-to-Book (P/B): 13.3x
- Book Value per Share: ₹229
- Current Price: ₹3051
Is Garden Reach Shipbuilders & Engineers Ltd a fundamentally strong company?
Garden Reach Shipbuilders & Engineers Ltd is rated Average with a fundamental score of 48.61/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +29.0% (10% weight)
- PAT Growth YoY: +24.2% (10% weight)
- PAT Growth QoQ: +77.2% (10% weight)
- Margins stable (10% weight)
Is Garden Reach Shipbuilders & Engineers Ltd debt free?
Garden Reach Shipbuilders & Engineers Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹37 Cr
What is Garden Reach Shipbuilders & Engineers Ltd's return on equity (ROE) and ROCE?
Garden Reach Shipbuilders & Engineers Ltd's return ratios over recent years
- FY2024: ROCE 27.0%
- FY2025: ROCE 37.0%
- FY2026: ROCE 43.0%
Is Garden Reach Shipbuilders & Engineers Ltd's cash flow positive?
Garden Reach Shipbuilders & Engineers Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-290 Cr
- Free Cash Flow (FCF): ₹237 Cr
- CFO/PAT Ratio: -39% (weak cash conversion)
What is Garden Reach Shipbuilders & Engineers Ltd's dividend yield?
Garden Reach Shipbuilders & Engineers Ltd's current dividend yield is 0.45%.
- Dividend Yield: 0.45%
- Current Price: ₹3051
Who holds Garden Reach Shipbuilders & Engineers Ltd shares — promoters, FII, DII?
Garden Reach Shipbuilders & Engineers Ltd's shareholding pattern (Mar 2026)
- Promoters: 74.5%
- FII (Foreign): 3.5%
- DII (Domestic): 1.7%
- Public: 20.3%
Is promoter holding increasing or decreasing in Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 74.5% (Mar 2026)
- Previous Quarter: 74.5% (Dec 2025)
- Change: 0.00% (stable)
How long has Garden Reach Shipbuilders & Engineers Ltd been outperforming Nifty 500?
Garden Reach Shipbuilders & Engineers Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is Garden Reach Shipbuilders & Engineers Ltd a new momentum entry or an established outperformer?
Garden Reach Shipbuilders & Engineers Ltd is an established outperformer with 3 weeks of consecutive Nifty 500 outperformance.
What are the key risks in Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd has 4 key risks worth monitoring
- [MEDIUM] Regulatory — 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
- [LOW] Commodity — Steel is only ~35% of project cost and partially hedged via procurement MOUs; equipment costs are customer-nominated and pre-agreed at contract start
- [LOW] Labor — 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
- [LOW] Geopolitical — 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
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): ..."
Is Garden Reach Shipbuilders & Engineers Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Garden Reach Shipbuilders & Engineers Ltd may be worth studying
- Earnings growing at +24.2% YoY
What is the investment thesis for Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +29.0% YoY
Risk Factors (Bear Case)
- Key risk: Regulatory
What is the future outlook for Garden Reach Shipbuilders & Engineers Ltd?
Garden Reach Shipbuilders & Engineers Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.