Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has signed a Memorandum of Understanding (MoU) with SWAN Defence and Heavy Industries Ltd. The collaboration aims to advance indigenous shipbuilding, promote exports, support workforce development, and align with the government’s ‘Aatmanirbhar Bharat’ initiative.
Focus Areas of the Alliance
The partnership will target the construction of commercial vessels and offshore platforms for international clients. Both companies will combine their infrastructure and design capabilities to optimize costs and enhance competitiveness. A key part of the plan involves developing a skilled local workforce and establishing a strong vendor ecosystem to support shipbuilding operations.
Company Profile and Operations
GRSE, a prominent defence shipbuilding company under India’s Ministry of Defence, primarily serves the Indian Navy and Coast Guard. The company generates 89% of its revenue from shipbuilding, including the production of frigates, missile corvettes, and patrol vessels. Its engineering and diesel engine segments contribute marginally to overall earnings.
Strong Order Book and Export Plans
GRSE has a current order book of Rs 23,877 crore, featuring high-value naval projects like the P17 Alpha frigates and Anti-Submarine Shallow Water Crafts. The company has the capacity to build 20 warships simultaneously and is investing in infrastructure upgrades to support export-driven growth. GRSE aims for a 25% CAGR in export revenue over the next two years.
Financial Highlights and Stock Performance
As of April 8, 2025, GRSE’s share price stands at Rs 1,568.9, with a 52-week high of Rs 2,709.8 and a low of Rs 859.55. The company has delivered 70.28% returns over the past year and over 1,125% in the last five years. The President of India holds a 74.5% stake in the firm.
Investor Outlook
With strong fundamentals, a solid order pipeline, and strategic focus on self-reliance and exports, GRSE continues to be a key player in India’s shipbuilding sector. Investors are advised to monitor this small-cap stock closely.
