Garden Reach Sh. (GRSE)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I first ask whether the business earns high returns on capital without leverage. GRSE does: ROE is 33.14%, ROCE is 36.64%, and debt-to-equity is zero. Promoters holding 74.50% aligns interests with minority shareholders. Piotroski F-Score of 7/9 also suggests solid financial health. Recent momentum is real—sales grew 46.65% and profit grew 74.54%, with the latest quarter showing net profit of ₹171 Cr on sales of ₹1,896 Cr. This is a high-quality defense shipbuilder with a niche moat. But Graham taught me that price is what you pay, value is what you get. Although the business quality is excellent, Mr. Market is asking ₹2,878.25 for a book value of ₹181.51—15.86 times book. The earnings multiple is 40.47. The Graham Number, a conservative benchmark based on earnings and book value, is ₹495.51, meaning the stock trades at a massive premium to that threshold. Even the DCF intrinsic value estimate of ₹866.31 is far below the current price. At this price, dividend yield is only 0.57%, and free cash flow of ₹185 Cr is under 1% of market cap. I cannot call this a bargain; it is a great business, but valuation leaves no margin of safety. It may be a wonderful compounder if growth continues, but discipline requires a better entry point. I admire the shipyard from a distance and wait for the price to become sensible.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer