GRSE share price: Garden Reach target as defence PSU wins Rs 32,000 crore order
GRSE shares: Antique said the Rs 10,000-crore order book, equivalent to a meagre 17 months of trailing 12-month revenue, could see an immediate boost.
- Nov 3, 2026,
- Updated Nov 3, 2026 8:53 AM IST
Garden Reach Shipbuilders Ltd (GRSE) has received a 'Buy' rating from Antique Stock Broking after the defence PSU signed a contract with the Indian Navy for the construction of five Next Generation Corvettes (NGCs), valued at Rs 32,000 crore. Deliveries are scheduled over nine years and four months from receipt of the first-stage payment.
Antique said GRSE had emerged as L-1 for the delivery of five NGCs in May 2025, followed by contractual negotiations that culminated in the signing of the contract.
"The final order value is slightly lower than the media-reported estimate of Rs 33,000 crore. In our view, this order will provide an immediate boost to the estimated order book of Rs 10,000 crore. Going forward, GRSE remains well placed for the upcoming P17B frigate programme, which could provide another sizeable order opportunity," Antique said.
The brokerage retained its target price of Rs 2,990, based on a core P/E of 40 times estimated H1FY29 earnings per share. It maintained its 'Buy' rating, citing a strong execution pipeline, a healthy defence order outlook and improving opportunities in commercial shipbuilding.
Antique said the Rs 10,000-crore order book, equivalent to a meagre 17 months of trailing 12-month revenue, could see an immediate boost. It said the timely awarding of the P17B frigate order was critical to sustaining revenue growth.
Potential downstream beneficiaries include Bharat Electronics Ltd, which is expected to play a significant role in radars, weapons and electronics. Kirloskar Oil Engines Ltd is developing a four-stroke 6 MW marine engine for the Indian Navy and could be a major gainer.
"Bulb bars are used to stiffen the hull of a warship. We estimate 200-400 tons of bulb bars per NGC vessel, with at least half of the demand to accrue to Krishna Defence (the company also makes special naval-grade welding electrodes)," Antique said.
While several small orders are in the naval procurement pipeline, the next major order for GRSE is the contract for the delivery of seven P17B (Bravo) frigates. The RFP for the project was released in September, and price bids could take another 6-8 months to be opened, Antique said.
"The potential order size could be Rs 70,000 crore, with L1/L2 delivering 4/3 units, respectively (meaning L1/L2 can potentially win Rs 40,000 crore/Rs 30,000 crore worth of orders, respectively). We expect GRSE to be a strong contender for this order as well, given that it is currently executing the P17A (Alpha) frigate order," Antique said.
Garden Reach Shipbuilders Ltd (GRSE) has received a 'Buy' rating from Antique Stock Broking after the defence PSU signed a contract with the Indian Navy for the construction of five Next Generation Corvettes (NGCs), valued at Rs 32,000 crore. Deliveries are scheduled over nine years and four months from receipt of the first-stage payment.
Antique said GRSE had emerged as L-1 for the delivery of five NGCs in May 2025, followed by contractual negotiations that culminated in the signing of the contract.
"The final order value is slightly lower than the media-reported estimate of Rs 33,000 crore. In our view, this order will provide an immediate boost to the estimated order book of Rs 10,000 crore. Going forward, GRSE remains well placed for the upcoming P17B frigate programme, which could provide another sizeable order opportunity," Antique said.
The brokerage retained its target price of Rs 2,990, based on a core P/E of 40 times estimated H1FY29 earnings per share. It maintained its 'Buy' rating, citing a strong execution pipeline, a healthy defence order outlook and improving opportunities in commercial shipbuilding.
Antique said the Rs 10,000-crore order book, equivalent to a meagre 17 months of trailing 12-month revenue, could see an immediate boost. It said the timely awarding of the P17B frigate order was critical to sustaining revenue growth.
Potential downstream beneficiaries include Bharat Electronics Ltd, which is expected to play a significant role in radars, weapons and electronics. Kirloskar Oil Engines Ltd is developing a four-stroke 6 MW marine engine for the Indian Navy and could be a major gainer.
"Bulb bars are used to stiffen the hull of a warship. We estimate 200-400 tons of bulb bars per NGC vessel, with at least half of the demand to accrue to Krishna Defence (the company also makes special naval-grade welding electrodes)," Antique said.
While several small orders are in the naval procurement pipeline, the next major order for GRSE is the contract for the delivery of seven P17B (Bravo) frigates. The RFP for the project was released in September, and price bids could take another 6-8 months to be opened, Antique said.
"The potential order size could be Rs 70,000 crore, with L1/L2 delivering 4/3 units, respectively (meaning L1/L2 can potentially win Rs 40,000 crore/Rs 30,000 crore worth of orders, respectively). We expect GRSE to be a strong contender for this order as well, given that it is currently executing the P17A (Alpha) frigate order," Antique said.