Garden Reach Shipbuilders - Possibilities Aplenty, But Priced In: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We believe that Garden Reach Shipbuilders and Engineers Ltd. has got significant growth prospects with potential orders for next-gen corvettes and P-17B frigates in the near future. However, the timing and extent of involvement of Garden Reach in these contracts remains critical. While management is focusing on several growth vectors at the moment – exports, commercial ship building and other equipment such as naval guns – we believe that such initiatives are still nascent. Factoring in the best possible outcome for Garden Reach in NGC and P-17B frigate orders and other potential orders flowing in in time, we find earnings per share constrained between Rs 60-70/share. Besides, the potential orders are expected to be on competitive bidding; hence, margins are expected to stay under pressure – though we are factoring in steady margin of 6-7%. Maintain Sell with an unchanged target price of Rs 500 (discounted cash flow-based methodology). Our target price implies a price/earnings ratio of 10.5 times on FY26E EPS, which is fair given the considerable uncertainties around future orders and current order book peaking out in FY26E..Click on the attachment to read the full report:.Blue Jet Healthcare Gets A 'Buy' As ICICI Securities Initiates Coverages Citing New Product Rampup.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Garden Reach Shipbuilders - Possibilities Aplenty, But Priced In: ICICI Securities

Ordering uncertainty mars prospects

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