defense
Garden Reach Shipbuilders
GRSE · Nifty 50
₹2,818.4
Price 2026-06-17
At a Glance
Fundamental
65/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Garden Reach Shipbuilders scores 65/100 on fundamentals (adequate). Garden Reach Shipbuilders: BROAD EXPANSION regime.
Fundamental Score: 65/100 · ADEQUATE · 1 signals detected
DuPont Analysis
ROE 30.5% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 30.46% is strong leverage-driven and stable. Net margin of 10.4% × asset turnover of 0.59x × leverage of 5.0x.
What This Means
Net margin of 10.4% means the company keeps ₹10.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.59x means the company efficiently uses its assets to generate revenue. Leverage of 5.0x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
21.6%
Operating
14.0%
Net
10.4%
Gross margin 21.6% → operating margin 14.0% → net margin 10.4%. Margins are stable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.0x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 63.1x — very comfortable. Debt service is not a concern.
Free Cash Flow
STRONGFCF margin negative at -0.8% — spending more than earning. Check capex cycle.
Peer Comparison
Garden Reach Shipbuilders is compared against 7 peers in the defense sector.
Key Watchpoints
Breaks above ₹2959 (+5%)
Trend reversal confirmation
Breaks below ₹2677 (-5%)
Further downside risk
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.0x net income. Profit not converting to cash — aggressive accounting possible.
Significant income from non-operating sources. Core business may be smaller than it appears.
Working capital is consuming significant cash. Operational efficiency declining.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
Strong insider alignment. Promoters have significant skin in the game.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes