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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 542011 | NSE: GRSE

Garden Reach Shipbuilders & Engineers Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:29 pm

Market Cap 17,234 Cr.
Current Price 1,504
High / Low2,835/673
Stock P/E46.9
Book Value 146
Dividend Yield0.61 %
ROCE27.4 %
ROE22.2 %
Face Value 10.0
PEG Ratio2.46

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Garden Reach Shipbuilders & Engineers Ltd

Competitors of Garden Reach Shipbuilders & Engineers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
DCX Systems Ltd 3,547 Cr. 318452/23567.5 1020.00 %9.27 %8.08 % 2.00
Data Patterns (India) Ltd 12,155 Cr. 2,1723,655/1,75165.6 2410.30 %19.7 %14.3 % 2.00
Paras Defence and Space Technologies Ltd 3,951 Cr. 9811,593/60980.0 1220.00 %11.4 %7.96 % 10.0
Zen Technologies Ltd 15,946 Cr. 1,7671,999/68878.8 1730.06 %47.3 %33.1 % 1.00
Mishra Dhatu Nigam Ltd 6,237 Cr. 333548/31280.1 70.40.42 %9.44 %7.00 % 10.0
Industry Average57,062.18 Cr1,254.5362.69139.330.34%23.06%17.11%4.45

All Competitor Stocks of Garden Reach Shipbuilders & Engineers Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3044224875435806826996017568989231,0161,010
Expenses302367435511546634652581710849874925953
Operating Profit2555233334847204649499156
OPM %1%13%11%6%6%7%7%3%6%5%5%9%6%
Other Income32364441414150707172827674
Interest00-01111452134
Depreciation79101091010101010101010
Profit before tax2682866364798676102107119153115
Tax %22%28%27%25%22%25%26%28%25%25%26%27%24%
Net Profit215963475059645577818811287
EPS in Rs1.805.135.504.124.385.135.584.836.697.057.709.747.61

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,5241,6111,5621,6579211,3471,3861,4331,1411,7542,5613,5933,846
Expenses1,3891,4881,5001,5651,0821,3621,3441,3911,0601,6132,4083,3593,602
Operating Profit1351236292-161-15424281141153234244
OPM %9%8%4%6%-17%-1%3%3%7%8%6%7%6%
Other Income758261191217179169215165154202300303
Interest11649853102101111
Depreciation14232728272927302936394142
Profit before tax1941819025220128179224207257305481494
Tax %32%36%43%35%43%28%39%27%26%26%25%26%
Net Profit132117521641192110163153190228357368
EPS in Rs106.4194.1341.77132.799.268.079.6014.2713.4016.5519.9131.1932.10
Dividend Payout %20%21%48%15%472%55%72%50%37%35%31%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-11.36%-55.56%215.38%-93.29%736.36%19.57%48.18%-6.13%24.18%20.00%56.58%
Change in YoY Net Profit Growth (%)0.00%-44.19%270.94%-308.68%829.66%-716.80%28.62%-54.32%30.32%-4.18%36.58%

Garden Reach Shipbuilders & Engineers Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:21%
3 Years:47%
TTM:39%
Compounded Profit Growth
10 Years:11%
5 Years:25%
3 Years:29%
TTM:39%
Stock Price CAGR
10 Years:%
5 Years:45%
3 Years:75%
1 Year:80%
Return on Equity
10 Years:13%
5 Years:17%
3 Years:18%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:30 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital124124124124124115115115115115115115115
Reserves7438318831,0139599079249261,0231,1431,2991,5591,728
Borrowings0000250004113126610
Other Liabilities5,0795,4772,9943,3173,4583,3023,1524,3555,6566,3749,0578,5248,207
Total Liabilities5,9476,4324,0014,4544,5674,3234,1915,3956,7977,64310,78310,26310,059
Fixed Assets278363366344358389302304340501508493502
CWIP77181122231634521511062515
Investments0000002548261972340187
Other Assets5,5926,0523,6244,0884,1853,9183,8524,9865,4806,93610,0369,7469,354
Total Assets5,9476,4324,0014,4544,5674,3234,1915,3956,7977,64310,78310,26310,059

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-74-112628515-3561,450-707
Cash from Investing Activity +267198245-1,173429-1,6661,056
Cash from Financing Activity +-193-89-153-62-72220-358
Net Cash Flow0-3720-72004-9

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow135.00123.0062.0092.00-186.00-15.0042.0042.0077.00130.00-159.00168.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days221137347955581365731720
Inventory Days1,5681,9323342363837271681,590606458662648
Days Payable941362021902909681771,922592159266161
Cash Conversion Cycle1,4951,80617079172-18648-19671330404507
Working Capital Days-18523-1,124-388-695-468-392-533-1,012-660-503-270
ROCE %24%20%10%24%3%12%18%22%21%20%20%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.50%74.50%74.50%74.50%74.50%74.50%74.50%74.50%74.50%74.50%74.50%74.50%
FIIs1.10%1.50%1.55%1.76%1.95%2.52%2.68%3.11%3.34%2.86%3.26%3.91%
DIIs12.74%11.27%10.68%9.16%8.36%7.55%7.91%7.46%5.96%6.03%6.14%3.20%
Public11.66%12.73%13.27%14.58%15.20%15.43%14.91%14.93%16.20%16.61%16.10%18.38%
No. of Shareholders34,61835,58635,80637,51841,46060,04860,63868,8591,08,9221,17,6211,25,6312,59,827

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan1,600,0000.41384.898,3452024-11-1319073.16%
Motilal Oswal Nifty India Defence Index Fund380,3983.9391.518,3452024-11-134458.39%
Nippon India Nifty Smallcap 250 Index Fund27,6540.396.658,3452024-11-13231.38%
Motilal Oswal Nifty Smallcap 250 Index Fund12,6110.383.038,3452024-11-1351.12%
Shriram Flexi Cap Fund8,3451.592.018,3452024-11-130%
Shriram ELSS Tax Saver Fund3,6351.540.878,3452024-11-13-56.44%
Motilal Oswal Nifty 500 Index Fund3,1050.040.758,3452024-11-13-62.79%
Shriram Balanced Advantage Fund1,0500.460.258,3452024-11-13-87.42%
Motilal Oswal Nifty Smallcap 250 ETF7140.380.178,3452024-11-13-91.44%
Motilal Oswal Nifty 500 ETF1050.040.038,3452024-11-13-98.74%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)31.1919.9116.5513.4014.27
Diluted EPS (Rs.)31.1919.9116.5513.4014.27
Cash EPS (Rs.)34.8023.3319.6615.9416.90
Book Value[Excl.RevalReserv]/Share (Rs.)146.09123.42109.8199.2790.81
Book Value[Incl.RevalReserv]/Share (Rs.)146.09123.42109.8199.2790.81
Dividend / Share (Rs.)9.366.205.805.007.14
Revenue From Operations / Share (Rs.)313.63223.58153.4299.59125.12
PBDIT / Share (Rs.)46.5930.6326.3122.6723.21
PBIT / Share (Rs.)42.9827.2123.1920.1320.59
PBT / Share (Rs.)41.9826.6422.4618.0819.54
Net Profit / Share (Rs.)31.1919.9116.5513.4014.27
PBDIT Margin (%)14.8513.6917.1422.7618.55
PBIT Margin (%)13.7012.1715.1120.2116.45
PBT Margin (%)13.3811.9114.6318.1515.61
Net Profit Margin (%)9.948.9010.7813.4511.40
Return on Networth / Equity (%)21.3416.1315.0613.4915.71
Return on Capital Employeed (%)27.4220.3019.3118.6720.73
Return On Assets (%)3.482.112.482.263.03
Total Debt / Equity (X)0.030.210.000.000.00
Asset Turnover Ratio (%)0.340.270.240.180.29
Current Ratio (X)1.121.070.930.981.13
Quick Ratio (X)0.640.750.740.841.03
Inventory Turnover Ratio (X)0.590.730.950.721.75
Dividend Payout Ratio (NP) (%)0.0031.8836.8639.1875.95
Dividend Payout Ratio (CP) (%)0.0027.2131.0232.9464.14
Earning Retention Ratio (%)0.0068.1263.1460.8224.05
Cash Earning Retention Ratio (%)0.0072.7968.9867.0635.86
Interest Coverage Ratio (X)46.4654.14394.4596.13199.09
Interest Coverage Ratio (Post Tax) (X)32.1036.20259.1065.50131.34
Enterprise Value (Cr.)5099.621190.6436.61-160.28-1042.52
EV / Net Operating Revenue (X)1.420.460.02-0.14-0.72
EV / EBITDA (X)9.553.390.12-0.61-3.92
MarketCap / Net Operating Revenue (X)2.442.041.481.861.09
Retention Ratios (%)0.0068.1163.1360.8124.04
Price / BV (X)5.243.692.061.861.51
Price / Net Operating Revenue (X)2.442.041.481.861.09
EarningsYield0.040.040.070.070.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Garden Reach Shipbuilders & Engineers Ltd as of November 15, 2024 is: 1,529.40

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Garden Reach Shipbuilders & Engineers Ltd is Undervalued by 1.69% compared to the current share price 1,504.00

Intrinsic Value of Garden Reach Shipbuilders & Engineers Ltd as of November 15, 2024 is: 1,821.38

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Garden Reach Shipbuilders & Engineers Ltd is Undervalued by 21.10% compared to the current share price 1,504.00

Last 5 Year EPS CAGR: 19.09%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -339.42, which is a positive sign.
  3. The company has higher reserves (1,072.15 cr) compared to borrowings (32.92 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (72.15 cr) and profit (231.69 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 116.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Garden Reach Shipbuilders & Engineers Ltd:
    1. Net Profit Margin: 9.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.42% (Industry Average ROCE: 23.06%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.34% (Industry Average ROE: 17.11%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 32.1
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 46.9 (Industry average Stock P/E: 62.69)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Garden Reach Shipbuilders & Engineers Ltd. is a Public Limited Listed company incorporated on 26/02/1934 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L35111WB1934GOI007891 and registration number is 007891. Currently Company is involved in the business activities of Architectural and engineering activities and related technical consultancy. Company’s Total Operating Revenue is Rs. 1757.51 Cr. and Equity Capital is Rs. 114.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseGRSE Bhavan, 61, Garden Reach Road, Kolkata West Bengal 700024co.sec@grse.co.in
http://www.grse.in
Management
NamePosition Held
Commodore P R HariChairman & Managing Director
Mr. Ramesh Kumar DashDirector - Finance & CFO
Mr. DIG Subrato GhoshDirector - Personnel
Mr. Sanjay Dattatraya PanseNon Official PartTime (Ind.) Director
Mr. Rajeev PrakashGovernment Nominee Director
Mr. Shantanu BoseDirector - Shipbuilding
Mr. Sanjeeb MohantyNon Official PartTime (Ind.) Director

FAQ

What is the latest intrinsic value of Garden Reach Shipbuilders & Engineers Ltd?

The latest intrinsic value of Garden Reach Shipbuilders & Engineers Ltd as on 15 November 2024 is ₹1529.40, which is 1.69% higher than the current market price of ₹1,504.00.

What is the Market Cap of Garden Reach Shipbuilders & Engineers Ltd?

The Market Cap of Garden Reach Shipbuilders & Engineers Ltd is 17,234 Cr..

What is the current Stock Price of Garden Reach Shipbuilders & Engineers Ltd as on 15 November 2024?

The current stock price of Garden Reach Shipbuilders & Engineers Ltd as on 15 November 2024 is ₹1,504.

What is the High / Low of Garden Reach Shipbuilders & Engineers Ltd stocks in FY 2024?

In FY 2024, the High / Low of Garden Reach Shipbuilders & Engineers Ltd stocks is 2,835/673.

What is the Stock P/E of Garden Reach Shipbuilders & Engineers Ltd?

The Stock P/E of Garden Reach Shipbuilders & Engineers Ltd is 46.9.

What is the Book Value of Garden Reach Shipbuilders & Engineers Ltd?

The Book Value of Garden Reach Shipbuilders & Engineers Ltd is 146.

What is the Dividend Yield of Garden Reach Shipbuilders & Engineers Ltd?

The Dividend Yield of Garden Reach Shipbuilders & Engineers Ltd is 0.61 %.

What is the ROCE of Garden Reach Shipbuilders & Engineers Ltd?

The ROCE of Garden Reach Shipbuilders & Engineers Ltd is 27.4 %.

What is the ROE of Garden Reach Shipbuilders & Engineers Ltd?

The ROE of Garden Reach Shipbuilders & Engineers Ltd is 22.2 %.

What is the Face Value of Garden Reach Shipbuilders & Engineers Ltd?

The Face Value of Garden Reach Shipbuilders & Engineers Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Garden Reach Shipbuilders & Engineers Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE