Garden Reach: Defence PSU stock GRSE down 18% in 6 months; here's fresh target price
GRSE is seen delivering earnings growth of 33 per cent in FY26 and 37 per cent in FY27, supported by execution and completion of the P-17A frigate and anti-submarine warfare corvette orders.
- Jan 9, 2026,
- Updated Jan 9, 2026 8:52 AM IST
Antique Stock Broking said Garden Reach Shipbuilders and Engineers Ltd (GRSE) remained well placed for strong near-term profit growth despite the stock correcting about 18 per cent over the past six months. The brokerage maintained a Buy' rating on the defence PSU with a revised target price of Rs 3,026. The defence PSU stock has fallen 18 per cent in the past six months.
Antique said GRSE is the lowest bidder for the next-generation corvette order and is also targeting a similar outcome for the P-17B frigate programme, for which a request for proposal was expected by March 2026. It expects the ordering process for P-17B to conclude by the end of FY27, which could potentially increase the company’s order book by about 3.6 times to Rs 73,800 crore.
“The demand outlook remains strong,” Antique said.
Antique expects GRSE to deliver earnings growth of 33 per cent in FY26 and 37 per cent in FY27, supported by execution and completion of the P-17A frigate and anti-submarine warfare corvette orders. It added that growth is likely to moderate in FY28 as revenue recognition from new order wins would be limited. The brokerage said it largely maintained its FY26 and FY27 profit estimates while cutting FY28 estimates by 5.3 per cent.
Antique said the Indian Navy is in the process of issuing a request for proposal for seven frigates under the P-17B programme, estimated at about Rs 70,000 crore, with the lowest and second-lowest bidders expected to execute four and three frigates, respectively. It said GRSE is well-positioned for the programme due to its ongoing execution of the P-17A frigate project.
The brokerage said GRSE’s current order book stood at about Rs 20,200 crore and included P-17A stealth frigates, anti-submarine warfare shallow water crafts, a survey vessel and next-generation offshore patrol vessels. It added that the next-generation corvette order, valued at over Rs 30,000 crore, is at the contract negotiation stage and is expected to be finalised by the end of FY26.
"We expect GRSE to deliver robust earnings growth of 33 per cent and 37 per cent in FY26E and FY27E respectively, supported by the execution and completion of P-17A Frigates and Anti-Submarine Warfare Corvette orders. However, growth is likely to moderate in FY28E as revenue recognition from new order wins would be limited," it said.
Antique reiterated its Buy rating on GRSE with a target price of Rs 3,026, based on a valuation of 42 times FY28 earnings.
Antique Stock Broking said Garden Reach Shipbuilders and Engineers Ltd (GRSE) remained well placed for strong near-term profit growth despite the stock correcting about 18 per cent over the past six months. The brokerage maintained a Buy' rating on the defence PSU with a revised target price of Rs 3,026. The defence PSU stock has fallen 18 per cent in the past six months.
Antique said GRSE is the lowest bidder for the next-generation corvette order and is also targeting a similar outcome for the P-17B frigate programme, for which a request for proposal was expected by March 2026. It expects the ordering process for P-17B to conclude by the end of FY27, which could potentially increase the company’s order book by about 3.6 times to Rs 73,800 crore.
“The demand outlook remains strong,” Antique said.
Antique expects GRSE to deliver earnings growth of 33 per cent in FY26 and 37 per cent in FY27, supported by execution and completion of the P-17A frigate and anti-submarine warfare corvette orders. It added that growth is likely to moderate in FY28 as revenue recognition from new order wins would be limited. The brokerage said it largely maintained its FY26 and FY27 profit estimates while cutting FY28 estimates by 5.3 per cent.
Antique said the Indian Navy is in the process of issuing a request for proposal for seven frigates under the P-17B programme, estimated at about Rs 70,000 crore, with the lowest and second-lowest bidders expected to execute four and three frigates, respectively. It said GRSE is well-positioned for the programme due to its ongoing execution of the P-17A frigate project.
The brokerage said GRSE’s current order book stood at about Rs 20,200 crore and included P-17A stealth frigates, anti-submarine warfare shallow water crafts, a survey vessel and next-generation offshore patrol vessels. It added that the next-generation corvette order, valued at over Rs 30,000 crore, is at the contract negotiation stage and is expected to be finalised by the end of FY26.
"We expect GRSE to deliver robust earnings growth of 33 per cent and 37 per cent in FY26E and FY27E respectively, supported by the execution and completion of P-17A Frigates and Anti-Submarine Warfare Corvette orders. However, growth is likely to moderate in FY28E as revenue recognition from new order wins would be limited," it said.
Antique reiterated its Buy rating on GRSE with a target price of Rs 3,026, based on a valuation of 42 times FY28 earnings.