GRSE Share Price Rockets 109% in 2024: What’s Next for the Shipbuilder?GRSE Share Price Rockets 109% in 2024: What’s Next for the Shipbuilder?

Garden Reach Shipbuilders & Engineers Ltd (GRSE) shares soared by 109% in 2024. The company is experiencing significant growth in its Commercial Shipbuilding segment, with increased orders expected from European clients. Additionally, GRSE is focusing more on its Ship Repair segment, with its revenue contribution rising from 1% to 3% between FY22 and FY24.

GRSE is expanding its capabilities in domestic warship building, commercial shipbuilding, and green energy platforms. The company is also developing autonomous platforms and co-producing marine diesel engines to enhance its growth prospects. GRSE’s primary focus remains on fulfilling the shipbuilding needs of the Indian Navy and the Indian Coast Guard.

Currently, GRSE’s order book totals Rs 25,231 crore, with shipbuilding making up 93% of this. Key projects include P17 Alpha, Anti-Submarine Shallow Watercraft, and Next Generation OPVs. The company is also eyeing high-value projects from the Navy and the Indian Coast Guard, including next-generation vessels and interceptor boats.

GRSE expects a 25 to 30% revenue growth over the next three years from major projects like P17 Alpha and Anti-Submarine Shallow Water Crafts. The revenue from ship construction will be impacted by a 15% allocation for depot spares, which affects earnings until the warranty period ends.

The company aims to maintain a steady profit margin of 7.5 to 8%. GRSE is benefiting from the Maritime Vision 2030, which supports Indian shipbuilders with financial assistance. The impact of orders from Bangladesh on GRSE’s order book is minimal, and the company does not anticipate major delays in project execution or payment.