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GRSE Share Price Soars After Stellar Q4 Results
Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) rocketed over 14% on May 14th, 2025, following the release of incredibly strong financial results for the March 2025 quarter (Q4FY25). The surge reflects investor confidence in the defense public sector undertaking (PSU) and its impressive performance.
A Quarter of Significant Growth
GRSE's Q4FY25 financial highlights were nothing short of spectacular. Net profit leaped a massive 118.9% year-on-year (YoY) to ₹244.2 crore, compared to ₹111.6 crore in Q4FY24. This wasn't a one-off; revenue from operations also saw significant growth, increasing by 61.7% YoY to ₹1,642 crore. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled, reaching ₹219 crore (a 141.8% YoY increase), boosting the EBITDA margin to a healthy 13.3% from 8.9% in the same period last year.
- Net Profit: ₹244.2 crore (up 118.9% YoY)
- Revenue from Operations: ₹1,642 crore (up 61.7% YoY)
- EBITDA: ₹219 crore (up 141.8% YoY)
- EBITDA Margin: 13.3% (up from 8.9% YoY)
This exceptional performance was attributed to efficient order execution, the maturation of ongoing shipbuilding projects, and improved cost management, according to the company.
Dividends and Future Outlook
Adding to the good news, GRSE's board recommended a final dividend of ₹4.90 per equity share for FY25, subject to shareholder approval at the upcoming AGM. This dividend, if approved, will be paid within 30 days of declaration.
Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, expressed optimism about the future. "Happy to report yet another set of strong numbers," he stated. "With our robust order book, maturity in production lines, and rising commercial shipbuilding opportunities, we expect even stronger performance in the coming year." His confidence is backed by projections of an order book exceeding ₹40,000 crore by the end of FY26.
Stock Performance and Analyst Predictions
The intraday high for GRSE on May 14th reached ₹2,191.90 on the BSE. While this represents a significant surge, the stock remains approximately 23% below its all-time high of ₹2,834.60 (July 2024). Recent monthly returns have been volatile but generally positive, showcasing a strong uptrend in recent months. However, analyst price targets vary widely, ranging from a minimum of ₹515.00 to a maximum of ₹1,783.00, with a consensus target around ₹1,306.67.
- 1-Year Gain: 111%
- May 2025: +13.5%
- April 2025: +14%
- March 2025: +34%
Conclusion: A Shipbuilder Sailing Smoothly?
GRSE's strong Q4FY25 results, coupled with a positive outlook from management and a robust order book, paint a picture of a company well-positioned for continued growth. While the stock's recent performance has been impressive, potential investors should conduct thorough research and consult with financial advisors before making any investment decisions. The company's improved margins, increasing dividend payouts, and the overall growth in India's defense manufacturing sector make GRSE a compelling stock to watch in the PSU and defense sector.
Disclaimer: This information is based on publicly available data. Always verify information through official sources and consult a financial advisor before making investment decisions.
