India’s aerospace and defense sector is rapidly growing, with a market size projected to reach $54.4 billion by 2033, growing at a CAGR of 6.99 percent. The sector received a record allocation of Rs 6.81 lakh crore in the 2025-26 budget, with Rs 1.80 lakh crore for capital acquisition. Domestic production is valued at Rs 1.27 lakh crore.
Price movement
With a market capitalization of Rs 14,982.26 crore, the shares of Garden Reach Shipbuilders & Engineers Ltd were trading at Rs 1,303.10 per share, increasing around 0.64 percent as compared to the previous closing price of Rs 1,294.80 apiece.
Matter Explanation
The company hit its 52-week or all-time high in July 2024 at Rs. 2,834.60 apiece and, comparing the same with the current stock price prevailing in the market, the share price has crashed by approximately 56 percent.
Additionally, Garden Reach Shipbuilders’ shares declined amid a broader correction in defence stocks. Investor confidence weakened due to setbacks in India’s $6 billion submarine project, including potential delays and contractor complaints. Despite a strong order book, concerns over the pace of new orders raise questions about future growth prospects.
Order Book and upcoming projects
The current order book stands at Rs 23,877 crore, covering 40 platforms across 10 projects, including 17 Navy warships, an Oceanographic Research Vessel, and an Acoustic Research Vessel. It also includes 6 Multi-Purpose Vessels for a German client, export orders, and 13 hybrid ferries for West Bengal, funded by the World Bank.
Also read: Microcap stock jumps 9% after receiving ₹44 Cr order from domestic & international clients
Project Execution Updates
The P-17 Alpha project is on track, with successful basin trials completed; the first ship is set for early delivery by August 2025. The Survey Vessel Large project has delivered two ships, with two more due by mid-2025. ASW Shallow Water Craft and Offshore Patrol Vessels are progressing on schedule.
Market Outlook
Management remains optimistic, forecasting a 20 percent to 25 percent CAGR over the next five years. The company is confident in securing high-value orders from upcoming RFPs, particularly for the Corvette and P-17 Bravo projects, strengthening its growth trajectory and reinforcing its position in the defense sector.
Export Potential & Government Initiatives
Exports make up 4% of the order book, with plans to quadruple in four years. The Rs.. 25,000 crore Maritime Development Fund aims to boost shipbuilding infrastructure. The government’s push for indigenous shipbuilding aligns with GRSE’s growth strategy, supporting both commercial projects and export expansion.
Company Profile
Garden Reach Shipbuilders & Engineers Ltd’s primary focus is on shipbuilding for the Indian Navy and Coast Guard. GRSE is a well-diversified, profitable shipyard that was the first in the country to export warships and deliver 100 to the Indian Navy and Coast Guard.
Written by Abhishek Singh
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