Garden Reach Shipbuilders & Engineers Ltd. share price target

We attended the Q1FY25 concall of Garden Reach Shipbuilders (GRSE). Orderbook at end-Q1FY25 was INR 252.3bn, four major contracts worth INR 15-16bn.

Garden Reach Shipbuilders’ (GRSE) Q1FY24 performance was boosted by P-17A frigates project entering the peak revenue booking phase. Key points: 1) revenue was up 30.4% YoY while EBITDA rose 37.6% YoY; 2) orderbook as at Jun’23-end was at INR 245.5bn, implying orderbook/revenue at 8.96x; 3) an order worth INR 2.5bn for Naval guns from Indian Navy was received; and 4) company subcontracted part of its orderbook to L&T for speedy execution.

We attended the analyst concall organised by Garden Reach Shipbuilders & Engineers’ (GRSE) to discuss the company’s Q4FY23 performance and outlook on the future.

Garden Reach Shipbuilders & Engineers’ (GRSE) Q4FY23 EBITDA performance was below street estimates by ~50.5%. Key highlights: 1) revenues rose 10.7% YoY largely on the back of delivery of two ships (cargo-cum-ferry vessel for the government of Guyana and fast patrol vessel {FPV} for Indian Coast Guard), and P-17A advanced frigates entering their peak billing phase.

On a steady course; guidance maintained.

We attended the analyst meet organised by Garden Reach Shipbuilders & Engineers’ (GRSE) to discuss its Q3FY23 performance and outlook. Key highlights: 1) Management sees benefits from the ongoing fleet expansion drive in defence; 2) EBITDA margin during the quarter was lower due to all the recent orders coming via competitive bidding.

Garden Reach Shipbuilders & Engineers’ (GRSE) Q3FY23 performance was a mixed bag. Key highlights: 1) revenues grew 44% YoY largely on the back of P- 17A advanced frigates, which have entered their peak revenue generation phase; 2) EBITDA was down 10% YoY at Rs469mn due to higher ‘other expenses’; 3) ‘other income’ rose 14.6% YoY to Rs.502mn mainly due to higher advances.

Garden Reach Shipbuilders & Engineers’ (GRSE) Q2FY23 performance missed consensus estimates. Key highlights: 1) EBITDA was down 12% YoY at Rs483mn despite higher gross margin owing to sub-contracting expenses shooting up 52% YoY.

Garden Reach Shipbuilders & Engineers (GRSE) reported lower than expected Q1FY23 revenues (up 6.5% QoQ, 91% YoY).

Garden Reach Shipbuilders & Engineers | Defence Good set of numbers despite COVID, now all eyes on FY22 Q4 numbers broadly in line with expectations GRSE reported a healthy set of numbers in Q4 with topline growing by 23.6% qoq, though on a yoy basis they fell by just 6.6%. This decline was much arrested as compared to Q3, when the revenues had fallen sharply by 24% yoy. The material costs saw a contraction in Q4 as they stood at 46.4% of topline and there was a reduction in employee costs as well, as we saw some cost savings at these line items. Subcontracting costs continued with the trend of growing as...

Garden Reach Shipbuilders & Engineers | Defence Emerging Goliath in building warships... Garden Reach Shipbuilders & Engineers (GRSE), a public listed company is a pioneer in defence shipbuilding, the first to deliver 100 warships to the Indian Navy and Indian Coast Guard Services. Due to its expertise in shipbuilding and strong, long lasting relations with its key clients, the company is well placed to provide important warship products in the coming years. The order book size of these projects is at a humungous 275 bn to be delivered till FY2027. This visibility shell ansure jump in revenues and profitability. Considering its strong...

IPO Note - Garden Reach Shipbuilders & Engineers Ltd Issue Open: Sept 24 - Sept 26, 2018, Price Band: Rs. 115 - 118 ( A discount of Rs. 5 per share to the Retail Investors and Eligible Employees) Issue Size: 29,210,760 Equity Shares ( Entirely Offer for sale including Employee Reservation of 572,760 sh )

IPO NOTE

Garden Reach Shipbuilders & Engineers (GRSE) is a defence public sector company primarily catering to shipbuilding requirements of Indian Navy & Indian Coast Guard. In addition to ship, warship building capabilities, GRSE is engaged in engineering, engine production activities. As part of its engineering division, it manufactures deck machinery items, prefabricated portable steel bridges, marine pumps. For GRSE, shipbuilding division contributes a significant majority of its revenue. It derived 92.2%, 90.1%, 94.1% of its revenue in FY16, FY17, FY18, respectively, from this division. GRSE (incorporated in 1934) is a mini Ratna category I company....