Garden Reach Shipbuilders Q4 Results Review - Impressive Performance; Upside Capped: ICICI Securities

ICICI Securities Report

Garden Reach Shipbuilders and Engineers Ltd.’s Q4 FY24 revenue rose 69% YoY (up 10% QoQ). Key points:

1. Ebitda margins increased to 8.9% (5.3% in Q3 FY24), while profit before tax margin rose to 15%, mainly due to increased Ebitda margin and higher other income.

2. The implied order book, as of March 2024-end, stood at Rs 218 billion.

3. Garden Reach Shipbuilders has received an order for a Trailing Suction Hopper Dredger in May-24 with an order value of $16.6 million.

4. Board has recommended a final dividend of Rs 1.44/share, taking the total dividend payment to Rs 9.36/share for the year.

Going ahead, factoring in big-ticket orders of NGC (5 nos.) and NGD (2 nos.), we estimate EPS to persist in the range of Rs 55–65/share through to FY32E.

Maintain Sell with a DCF-based target price of Rs 515 (earlier Rs 500).

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