Waya initiates coverage on Garden Reach Shipbuilders & Engineers Ltd. (GRSE) with a BUY recommendation. Waya expects an upside of 29% in 1 year and sets a target price of ₹2,875.

GRSE is one of India’s leading defence shipbuilders and a key supplier to the Indian Navy and Coast Guard. With a legacy of over 140 years, the company builds advanced warships, patrol vessels and survey ships, and is also involved in engineering products like portable steel bridges and marine equipment.

GRSE has strong financials with revenue rising sharply to ₹5,076 crore in FY25 and profits growing consistently. The company has a healthy order book of over ₹20,000 crore, which is expected to expand further with large defence orders such as the Next Generation Corvettes. Improving execution and operating leverage have led to steady margin expansion.

Waya believes GRSE is well-positioned for long-term growth, driven by India’s defence indigenisation push, strong naval order visibility and increasing exports, supporting sustained earnings growth over the next few years.