ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 1

ANTIQUE SECTOR REPORT

DEFENCE COVERAGE

India Defence Sector

Listed defence shipyards’ order-book to swell by >3x in
two years!
We continue to be positive on the Indian defence shipyards sector given
strong order outlook, a robust policy framework favoring indigenization,
and substantial government investment. The Defence Acquisition Council
(DAC) has approved orders worth INR 8.45 trn over FY22–25, which is almost
3.3x the same number for the preceding three years. We expect this to translate
into significant order inflows in FY26–27 for defence shipyards.
Mega orders worth INR 2,354 bn lined up in FY26–27, approx 3.1x combined order book
of the three listed defence shipyards
The procurement pipeline for defence warships is substantial, though it is often subject to
multi-year delays. Nevertheless, based on industry interactions, we are have a fair degree of
Sanjeev B Zarbade confidence and visibility on key big-ticket orders worth INR 2,120 bn that are likely to be
+91 22 6911 3414 placed during FY26–27.
[email protected]
The key big-ticket orders, a key monitorable for defence shipyards
Repeat order of 3 Nos Kalvari-class submarines: The DAC plans to place a repeat
order for three Kalvari-class submarines with Mazagon Docks. The order will be on a nominated
basis. Media reports indicate that the naval group is offering a larger variant than the first six
Scorpene submarines and will also feature a DRDO developed fuel-cell based AIP (Air
Independent Propulsion) system. This added feature will extend the length of the submarine
and enhance its underwater endurance through the integration of Lithium-ion batteries. The
order value could be approximately INR 360 bn and could get placed in FY26.
P75I Submarine order: The P75I involves construction of six conventional submarines
with AIP capabilities under the Strategic Partnership (SP) model. Unlike the P75 order, which
Mazagon Dock Shipbuilders was placed on MDL on a nominated basis, the P75I order is based on competitive bidding.
CMP : INR 2,905 Moreover, the order stipulates stringent tech-transfer, higher indigenization, and large liability
Reco : BUY for foreign vendor. Given this situation, the race for this order has narrowed down to only one
bid from MDL-Thyssen Krupp Marine Systems (TKMS). The order value could be around INR
Target Price : INR 3,433
700 bn at today’s prices and technological sophistication. We expect this order to be finalized
in FY27 on a conservative basis.
Cochin Shipyards Next-generation Corvettes: The Next-Generation Corvettes (NGCs) are a planned class
of eight anti-surface warfare corvettes for the Indian Navy, designed to be armed with anti-
CMP : INR 1,521 ship or land-attack missiles like BrahMos. They are expected to feature advanced stealth
Reco : HOLD capabilities and are part of a larger program to modernize the Indian Navy. The project is
Target Price : INR 1,481 worth approximately INR 360 bn (USD 4.5 bn). This order is in an advanced stage and price
bids could be opened in 1HFY26. The lowest bidder will get to deliver five units.
P-17B Frigates: These frigates are expected to be more advanced than the P-17A class,
Garden Reach Ship. & Engineers with a more robust armament package. Order value could be INR 700 bn based on its
CMP : INR 1,820 Acceptance of Necessity (AoN) grant. The order is based on competitive bidding with L1
getting four ships. The RFP for this order is expected to be released by the end of 2025 and
Reco : BUY
price bids may get opened possibly by mid-2026.
Target Price : INR 2,024
Investment Summary
While defence stocks experienced a price correction during July 2024-Mar 2025, there has
been a strong rebound in April, primarily triggered by the geopolitical flare-up on western
border and the government’s approval of orders worth INR 540 bn. Additionally, the broader
improvement in investor sentiment has further supported this recovery. Given the long-term
earnings potential in defence shipyards, we expect these stocks to likely trade up to 45x FY27
core earnings. We continue to maintain our positive stance on Mazagon Dock and GRSE.
The stock price outlook for Cochin Shipyard is closely tied to the ordering of an aircraft carrier
(IAC-II) on which there is lack of consensus over the urgency and size of the vessel, driving us
to temper our stance on the stock.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 2

Massive order funnel

The combined order book of the three major defence shipyards (MDL, GRSE, and CSL) have
remained stagnant since FY19 even though their combined revenue has increased from INR
89 bn in FY19 to INR 124 bn in 9MFY25. We note that this is mainly due to delay in placing
of new orders (P75I and IAC-II) coupled with the completion of major orders placed between
2010–2020 (IAC-1, six Kalvari-class submarines, four 17B destroyers, and seven 17A Frigates).
Nevertheless, DAC has approved orders worth INR 8.45 trn in between FY22–25, which is
almost 3.3x the same number for FY19–21. We expect this to translate into significant order
inflows in FY26–27. We see large orders being placed in FY26/ 27 led by the ordering of six
submarines under P75I, three Kalvari-class submarine, next-generation Corvettes, and P-17B
Frigates, besides a host of smaller vessels. We have not considered ordering of the IAC-II as
there is lack of consensus on whether to order more submarines or go for an IAC-I (Vikrant)
type carrier.

Table 1: Order pipeline remains robust

System Nos Cost INR bn Status
Project P75I (Conventional Submarines with Air Independent Propulsion) 6 430* Commercial bid opened. Awaiting contract price negotiations
P-19. Next generation stealth guided missile destroyer 8 800 na
Next Generation Corvettes (NGC) 8 360 Price bids to be opened
P-17B Frigates 8 700 AoN granted in Sep 2024. RFP by Dec 2025
Kalvari Class Attack Submarine 3 330 Discussions at advanced stage
Indigenous Aircraft Carrier 2 (IAC-2) (Vishal) 1 400 Discussions on placing a repeat order of IAC-1
P77 (formerly P75A Nuclear Submarine) 2 450 CCS approval received
Fast Interceptor Craft (Patrol Vessels/Boats 120 33 AoN granted in Dec 2024
Project-76 12 na Fully indigenized submarine prototype to be ready by 2028
High Speed Landing Craft 6 30 na
Landing Platform Docks 4 na At RFI stage
Fast attack craft 31 35 AoN granted in Dec 2024
Next Generation Fast Patrol Vessels 18 10 AoN granted in Sep 2024
Next Generation Offshore Patrol Vessels 6 10 AoN granted in Sep 2024
Multi-purpose Vessels 2 14 AoN granted in Sep 2024
Next Generation Survey Vessels 5 35 AoN granted in Sep 2024
Source: Industry, Antique; * based on 2015 price

Order visibility beyond FY26-27 is also promising

Investors skeptical of an order cliff beyond FY27 but they need not worry as we see a robust
order pipeline beyond FY27 led by large orders for submarines and destroyers. Prominent
among the future orders eight numbers of the Next-Generation Destroyers under P-18 (successor
of the P-15B class), valued at an estimated cost of INR 800 bn. Apart from this, under the P-
76 program, the government plans to build a submarine based on an Indian design and has
called for a prototype to be ready by CY2028. The plan is to procure 12 submarines under
this program; the value could be INR 1,200–1,500 bn. By CY2028, we also expect the
government to firm up a plan to order a third aircraft carrier to be ready by CY2038 to
replace INS Vikramaditya.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 3

Exhibit 1: Combined order books of the MDL, GRSE, and CSL

3,000
INR bn

2,500

2,000

1,500

1,000

500

0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Source: Industry, Antique

Exhibit 2: DAC approvals have gained traction

4,000
INR bn
3,500

3,000

2,500

2,000

1,500

1,000

500

-
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Source: Industry, Antique

Exhibit 3: Defence capital outlay (INR bn)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
1065

1318

1448

1580

1572

1595

1800

200
864

904

898

0
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25RE FY26BE
Source: Department of Defence, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 4

Ship repairs—An emerging opportunity for Indian shipyards

The global ship repair market is approximately USD 12 bn and is projected to reach USD 40
bn by 2030. Shipyards in China, Singapore, Bahrain, Dubai, and the Middle East account
for a major share of this market. These locations have achieved a dominant position despite
higher cost of ship repair services compared to other Asian counties, largely due to the
availability of a skilled workforce and the latest technology which allow these shipyards to
attract demand from other low-cost locations like India, Malaysia, and Indonesia.
Though India’s share in global ship repair is less than 1%, the country’s location is favorable
with 7% to 9% of the global trade passing within 300 nautical mile (NM) of the coastline.
Additionally, India is poised well to offer repair services to the Indian Navy and its allies: the
US Navy’s 5th and 7th fleet in the Indian Ocean & Arabian Sea.
Having said that, growth of the Indian ship repair industry has been constrained due to
competition from yards in Singapore and China. The ship repair business requires the creation
of an ancillary ecosystem so that there is timely availability of spare parts. The other major
issue about lack of stocking of spare parts in India is due to the cumbersome process of return
of unsold goods, attributed mainly to the rigorous custom procedures.
MSRA with the US Navy can potentially open a USD 8.0 bn market for India
Over the past few decades, the United States has experienced a significant decline in its
shipbuilding capacity, having shut down nine of its thirteen naval shipyards. This has coincided
with a massive increase in Chinese ship-building capacity. In a potential conflict over Taiwan,
the US Navy will lose precious time in sending its damaged vessels all the way to its shipyards
for repairs. To avoid this, the US is engaging with Japan, South Korea, and India for the MRO
of its vessels. As part of this endeavor, Mazagon Dock, L&T, and Cochin Shipyard, have
signed Master Ship Repair Agreements with the US Navy. In our view, this is a major vote of
confidence for Indian ship repair capabilities as it has come after a thorough evaluation
process and capability assessment by the US Navy’s Military Sealift Command.
This has positive business implications for Indian shipyards. Repair and maintenance is a
high margin business compared to ship-building and can lift the overall margin profile of
shipbuilders. Besides, MSRA-certified shipyards can secure recurring contracts for the
maintenance and repair of U.S. Navy vessels, leading to steady revenue. Apart from this,
ship builders stand to gain in terms of skill development, and enhanced operational standards.
Over and above this, being MSRA-certified elevates a shipyard’s reputation, potentially
attracting contracts from other navies and commercial clients.
The global naval ship repair market is estimated at USD 8.0 bn and contracts can range
from USD 10 mn to USD 100 mn+ per project, depending on the scope and vessel class.
Moreover, these are not one-offs—maintenance is a cyclical and ongoing requirement.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 5

Exhibit 4: Strategic opportunity to offer ship repair services to allied navies

Source: Maritime Vision 2030

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 6

The government is keen to build India’s standing as a ship building hub

The Indian government has indicated its intent to develop India’s shipbuilding sector in the
past but results have not been fruitful. However, there is a renewed effort to build Indian
shipbuilding. A high level government delegation has visited the South Korean shipyard of
Hanwha Ocean to study the best practices and forge collaborations. The South Korean
shipbuilding sector is dominated by three big shipyards: Samsung Heavy Industries, Hanwha
Ocean, and HD Hyundai Heavy Industries. These three shipyards bagged orders worth USD
22.6 bn in 2024. Media reports indicate that the Korean ship makers are facing a shortage
of workers amid strong order flows and fully utilized capacities. Hanwha Ocean and Hyundai
Heavy are looking to collaborate with Indian shipyards to offload some orders.

Table 2: Top global shipbuilders

Country Shipping Order Book Share
China 55%
South Korea 20%
Japan 10%
Source: Eurasia Times

Table 3: Three shipyards dominate the Korean industry

South Korean Yards Orders Secured in 2024 USD bn Vessels
Hyundai Korea 12.1 112
Hanwha Ocean 5.7 26
Samsung 4.9 22
Source: Eurasia Times

Exhibit 5: Shipbuilding lifecycle with position of prominent shipbuilding nations

Source: FICCI
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 7

Key government measures to drive shipbuilding

Maritime India Vision, 2030 has set a target to elevate India’s global ranking in shipbuilding
in top 10 and the vision as per the Maritime Amrit Kaal Vision, 2047 is to reach within top 5
positions. The Government of India has unveiled a comprehensive strategy to invigorate its
shipbuilding industry. The prominent measures include:
n Establishment of a Maritime Development Fund (MDF) with a corpus of INR 250 bn
(approximately USD 3.0 bn). The government will contribute 49% to this fund, with the
remainder expected from ports and private investors. The MDF is designed to provide
long-term financial support to the shipbuilding and repair sectors, addressing the industry’s
need for sustained capital infusion.
n The Shipbuilding Financial Assistance Policy (SBFAP) will be revamped to address cost
disadvantages, including credit notes for shipbreaking at Indian yards.
n Whenever acquisition of a vessel(s) is undertaken through tendering route, the qualified
Indian Shipyards will have a “Right of First Refusal” to enable them to match the evaluated
lowest price offered by the foreign shipyard which is aimed at increasing shipbuilding
activities in Indian shipyards.
n Government entities dealing with shipbuilding and ship-owning are advised to ensure
local content as per the Government of India Public Procurement (Preference to Make in
India) Order, 2017. As per this Order, procurement of ships of less than INR 2.0 bn is
required to be from Indian shipyards.
n The exemption of Basic Customs Duty (BCD) on raw materials, components, and parts for
shipbuilding to be extended for another decade.
n The tonnage tax scheme will be extended to include the Inland Water Transport (IWT)
sector.
Key challenges for Indian shipbuilders
n Delays in procuring critical components like engines, navigation systems, and specialized
steel can impact shipbuilding timelines.
n The International Maritime Organization (IMO) has been enforcing stringent environmental
regulations, including carbon emission reduction targets. This necessitates investment in
green shipbuilding technologies, such as LNG-powered vessels, hydrogen fuel cells,
and electric propulsion. Indian shipyards must innovate to remain competitive while
adhering to these evolving standards.
n Countries like China, South Korea, and Japan dominate the global shipbuilding market,
benefiting from decades of experience, economies of scale, and state subsidies. India
will need to enhance its competitiveness through policy support, skilled workforce
development, and improved industrial efficiency.
n Advanced shipbuilding requires highly specialized skills in naval architecture, marine
engineering, and automation. Investing in maritime education, training partners with
global shipyards, and skill development programs will be crucial to ensuring a steady
pipeline of skilled professionals.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 8

Table 4: Comparison of Indian and Chinese/ SK shipyards

Criteria Chinese/SK Indian
Production Volume Very Large Small
Layout Product Oriented Process Oriented
Capacity of Facilities Expanding to meet demand Insufficient to meet demand
Ship Design Early Start, Done in-house Late Start, Outsourced
Scheduling Exact Algorithm/ Heuristics Manual - rule of thumb
Automation Level High Minimal
Pre-Outfitting 0.8 0.1
Skilled Workforce Sufficient Inadequate
Vendor Location Very Near (1 hour drive) Very Far - Across Continents
Outsourcing Complex blocks outsourced Simple blocks outsourced
Source: Industry, Antique

Private shipyards unlikely to pose a challenge to PSU shipyards for naval orders
PSU shipyards have an advantage over their private counterparts when it comes to naval
orders. The cost of a warship is typically 70% systems, 30% hull construction and outfitting. In
contrast, for a commercial ship the figures are typically 20% systems and 80% hull construction.
The underlying skill sets and processes for warship work are not currently available with
private shipyards. In general terms, the more war-like the vessel, the more complex the ship:
this does not necessarily apply to hull fabrication, but does apply to many aspects of design,
outfitting, sensors and weapon systems integration, trials and commissioning.
Naval shipbuilding is specialized work and demands significant assurance regimes,
engineering and professional support, the underlying skills for which takes time to build and
efforts to sustain. Private shipyards have expertise in less complex auxiliary and support
vessels, where commercial design and production techniques offer considerable efficiencies
over warship construction practices. Except in nuclear submarines (INS Arihant - built by L&T),
we do not see much competition for other naval vessels from private shipyards.

Shipbuilding capacity—CSL has the largest shipbuilding capacity in the country

Ship building capacity of a unit is defined in terms of the maximum carrying capacity of the
ship that can be built by a shipyard measured in terms of Dead Weight Tonnage (DWT)
which is the number of tons of storage, fuel, and cargo that a ship can carry. Among defence
shipyards, Cochin Shipyard (CSL) possesses the maximum ship building capacity (110,000
DWT) followed by Hindustan Shipyard Ltd. (80,000 DWT). CSL also leads in ship repairing
capacity at 125,000 DWT. In terms of number of ships, MDL has the capacity to build 11
submarines and 10 ships concurrently.
Besides dry docks, the other key infrastructure needed are 1) Goliath Gantry Cranes with
large lifting capacity, 2) Fabrication yard, and 3) Floating docks—these are mobile docks
used for outfitting of submarines.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 9

Table 5: Shipbuilding Capacities and related Infrastructure.

Shipyard DWT Product line
Mazagon Docks 40,000 Destroyers, Frigates, Submarines
Garden Reach Shipbuilders 10,000 Frigates, Corvettes, OPVs, FACs, LCUs, Shallow Water Anti-Submarine Craft
Goa Shipyard 6,000 Frigates/Corvettes, Missile, vessels, OPVs
Hindustan Shipyard 80,000 Large Fleet Support Ships, Large cargo carriers, Submarine overhauls
Cochin Shipyard 110,000 Aircraft Carrier, Large Cargo ships/Tankers, Coastal Anti-Submarine
L&T Shipbuilding 20,000 Large cargo vessels, OPVs, floating docks, interceptor boats, submarines, LPD
Swan Defence na OPVs

Global Shipyards
Hanwha Ocean 320,000 VLCCs, Submarines, MRLC
93,900 LNG Carriers

Hyundai Heavy
Dry Dock - 1 800,000 VLCCs, Submarines, MRLC
Dry Dock - 2 800,000 LNG Carriers
Dry Dock - 3 500,000
Source: Industry, Antique, Company Annual Reports and presentations
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 10

Exhibit 6: Dry dock Exhibit 7: Floating dock

Source: Industry, Antique Source: Industry, Antique

Cost structure—Weapon systems is the largest cost component in a warship

The cost structure of a warship can be classified into three broad segment 1) Float – Hull, 2)
Move – Propulsion System, and 3) Fight – Weapon Systems. In a warship, the cost of weapon
systems is much higher relative to a commercial vessel.

Exhibit 8: Indigenization levels in warships Exhibit 9: Cost composition of a warship

100 Indigenisation level (%)
Profit Margins,
90 10%
80
70
60 Equipments,
Steel, 55%
50 20%
40
30
20
10

10
90

60

40

30

70

0
Float (Hull) Move (Propulsion) Fight (Weapons) Labour,
15%
Indigenous Import
Source: Industry, Antique Source: Industry, Antique

Table 6: Equipment in warships

Category Type of Equipment
Float Fuelling rigs of tankers, Radar absorbent paints
Move Gas turbines, Diesel engines, Gear boxes, Propellers, Control systems, IPMS
Fight SAM, Surface surveillance radar, Air early warning radar, UAV, SRGMs
Diving Night vision equipment with advanced optics, Micro UAVs
Submarine Main motor generators, Propulsion motors, Integrated sonars
Source: Industry, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 11

Profit margins: Larger warships tend to have greater margins

Traditionally, most defence orders have been placed on a nominated basis. In these orders,
there is a fixed cost component (weapons and propulsion systems), being largely purchased
from domestic/ foreign vendors. Fixed component margins are low, though there remains
scope for extracting margins through project management efficiencies. Margins on the variable
part (hull) is higher.
EBITDA margin of defence shipyards is also a function of the complexity of the warship, with
larger-value ships earning a higher margin. CSL has traditionally earned the highest margin
among the three listed defence shipyards due to construction of the IAC-I. GRSE’s profit margin
is lower compared to MDL/ CSL, possibly as the company executes a comparatively higher
share of small and medium sized vessels.
Warship building projects have multi-year execution cycle, with multiple design changes
during the life cycle. As a result, better clarity with respect to costs and margins emerges
towards the later part of the project execution. Hence, profit margin could be lumpy towards
the end as shipyards tend to be conservative in accounting for profits at the start of the order.
An early delivery of a warship also has a favorable effect on the margin.

Table 7: Margin profile of Indian state-owned shipyards

(%) FY21 FY22 FY23 FY24 FY25E
Gross margins
MDL 29 30 29 30 39
GRSE 61 47 37 37 30
CSL 57 49 53 55 52

Subcontracting expenses to sales

MDL 10 7 6 4 11
GRSE 11 14 12 15 12
CSL 12 13 18 14 17

Employee costs to sales

MDL 16 14 10 9 9
GRSE 24 17 12 10 8
CSL 10 10 14 10 10

EBITDA Margins
MDL 6 8 10 15 22
GRSE 6 8 6 7 6
CSL 26 20 11 24 23

PAT Margins
MDL 13 10 14 19 21
GRSE 14 11 9 10 8
CSL 22 18 12 22 19

RoCE
MDL 22 23 39 52 50
GRSE 18 18 20 28 29
CSL 20 18 6 11 12
Source: Industry, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 12

Other key aspects of warship building

Revenue booking cycle: Revenue booking tends to follow a S-curve, in which during the
initial phase of ship building will have flat revenue booking—this is the design phase and
there is no addition on the value of production. However, revenue booking accelerates once
keel laying has completed and a large amount of fabrication starts happening followed by
installation of equipment (propulsion/ HVAC/ electrical). This is followed by the installation of
the weapon systems, leading to a spurt in the value of production. After this, the sea trials
start, wherein the revenue booking flattens again, completing the second arm of the S-curve.
D-448 liabilities: These are part of the acceptance process of a ship. In the context of
shipbuilding, D-448 refers to the pending contractual liabilities of a shipyard after the completion
of a ship’s trials and before its official commissioning. These liabilities typically include
outstanding work, adjustments, or necessary modifications to equipment or systems that the
shipyard is obligated to complete. Post completion of all D-448 liabilities, which is generally
completed during the guarantee period, a second reading of D-448 is carried out and this
concludes the final stage of payment to be made to the shipyard.
Liquidated Damages (LDs): In case of delay in completion of the project and if the delay
is attributable to the shipyard, Liquidated Damages are levied after a Grace Period (5% of
the stipulated build period). Shipyards provide for LDs based on their assessment. The
culpability of the delay is firmed by the navy, and amount of LDs are refunded for delays not
attributable to the shipyard.

Exhibit 10: Trend in refund of LDs for MDL

4
INR bn
3.5

2.5

1.5

0.5

0
FY21 FY22 FY23 FY24 9MFY25
Source: MDL

Broad guidelines for stage-wise payment: The terms of payment may vary between
each project depending upon a variety of factors such as indigenous content, necessity for
building infrastructure, imports, and design considerations. However, broadly speaking, around
15% of the cost of a warship project is taken as B&D stores (Base and Depot). This is to ensure
that the shipyard is not short of components and spare parts when the need arises. An
advance payment of 10% is made with the signing of the contract. This is followed by
milestone-based payments (% of physical completion). By the time of sea-trials, 85% of the
payments are made. The final 5% of the payment is released on completion of final reading
of D 448 and completion of all guarantee liabilities.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 13

Company Section
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 14

CMP : INR 2,905 COMPANY UPDATE

Reco
Target Price
: BUY çè
: INR 3,433 é
Mazagon Dock Shipbuilders
Target Price Change : 24% Leader in conventional submarines
Target FY27 P/E (x) : 45 (core business)
We expect Mazagon Dock’s (MAZDOCK) order book to increase by ~5x by
EPS Change FY26/ 27 : -2%/ -10% the end of FY27, led by ordering of the Kalvari-class submarine on nomination
basis and finalization of six submarines under the P75I plan. Apart from
this, the company is well placed for orders of Corvettes and Frigates. On the
non-defence front, the company’s focus is on ship building and green energy
platforms such as hybrid ferries, green tugs, which offer decent opportunities
for growth. We maintain BUY rating on the stock with a TP of INR 3,433 at a
Sanjeev B Zarbade core earnings target P/E multiple of 45x FY27 earnings.
+91 22 6911 3414 Maintains leadership in construction of conventional submarines
[email protected]
MAZDOCK is the premier conventional (diesel-electric) submarine builder in the country. It is
the only shipyard possessing two Independent Submarine Assembly and Launch Lines. We
highlight that naval shipbuilding is a specialized work and demands significant engineering
and professional support, skills that are built over a period of time. The learnings from building
six Kalvari-class submarines are of immense value for the company and should help it in
delivering productivity improvements in future orders. Hence, we expect MAZDOCK to maintain
Market data leadership even in future orders from the Indian Navy.
Sensex : 82,430
Strong near-term order inflow visibility
Sector : Defence
Market Cap (INR bn) : 1,171.6 MAZDOCK’s near-term order pipeline is very promising. The Indian Navy has proposed the
Market Cap (USD bn) : 13.722
procurement of three additional Kalvari-class submarine from MAZDOCK on a negotiated
basis. These submarines are expected to be larger in size than the first batch of submarines
O/S Shares (mn) : 403.4
and may cost up to INR 350 bn and will incorporate a DRDO-made AIP system. Beyond this,
52-wk HI/LO (INR) : 3172/1045
the company and its tech-partner TKMS are the sole bidders for the delivery of six submarines
Avg. Daily Vol ('000) : 7,155 under the P75I program. We estimate this order could be valued at around INR 600 bn.
Bloomberg : MAZDOCKS IN Over and above this, there are orders for P17B Frigates and next-generation Corvettes and
Source: Bloomberg Destroyers, based on competitive bidding. Basis these orders, we estimate the company’s
Valuation order book to catapult to INR 1.3 trn by end of FY27E from INR 340 bn in FY25E.
FY26e FY27e FY28e Doubling of capacity to make the company future-proof in terms of infrastructure
EPS (INR) 73.0 86.2 100.5 The company is expected to incur approx. INR 40–50 bn over the next 4–5 years in capital
P/E (x) 39.8 33.7 28.9 expenditure. INR 8 bn has been spent on the acquisition of land (58,887.04 sq. meters) on
P/BV (x) 12.5 9.9 8.0 long-term lease (for a period of 29 years w.e.f. April 01, 2024) and settlement of existing
EV/EBITDA (x) 38.6 31.2 25.9 long-term lease. It currently has the capability to construct 21 platforms concurrently (11
Dividend Yield (%) (0.8) (0.9) (1.0) submarines and 10 ships across various stages) and is planning a long-term capex to develop
the recently acquired land parcel into a ship building and ship repair facility that would
Source: Bloomberg
nearly double its capacity in about 4–5 years. The capex will also enable the company to
Returns (%) accept larger vessels requiring greater draft.
1m 3m 6m 12m Ship repairs can diversify and aid income stream
Absolute 19 33 43 164
Shipbuilding and submarine are long gestation projects. However, ship repairs are short-term
Relative 9 23 37 133 undertaking. In the past, MAZDOCK has repaired ships for defence and commercial clients.
Source: Bloomberg The company has signed Master Ship Repair Agreement (MSRA) with the US Government
Shareholding pattern represented by NAVSUP Fleet Logistics Centre Yokosuka to carry out voyage repairs of US
Navy vessels. The company plans to invest in a new shipyard in Nhava, Navi Mumbai to
Promoters : 81% cater to the ship repair business.
Public : 15% Reviving the export market
Others : 5% MAZDOCK is keen to export its products to LATAM, Africa, the Middle East, and Scandinavian
Source: Bloomberg regions. The company has entered into agreement with sales agents. In the past, it has
delivered products to Mexico, France, Bahamas, and Yemen.
Price performance vs Nifty
Investment Summary
310
The Mazdock stock has outperformed peers in the past 12-month period, possibly due to the
255
visibility of catalysts including orders worth INR 1.0 trn from: 1) The three nominated submarines
200 of Kalvari-class and 2) Six submarines under P75I. Unlike aircraft carriers, there is unanimity
145 at the policy level about the need to accelerate submarine strength. Additionally, the strong
90 investor response to the company’s recent OFS indicates the street’s optimism on the stock. We
May-24 Sep-24 Jan-25 May-25 retain our positive view on the stock and recommend BUY with a TP of INR 3,433 based on
Mazagon Dock NIFTY a P/E multiple of 45x FY27E earnings (core PE of 45x + value of Goa Shipyard + cash in
Source: Bloomberg Indexed to 100 FY26). Risks: Delay in execution schedule or delay in translating the P75I submarine order.
 -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
-
20,000
40,000
60,000
80,000
1,00,000
1,20,000
1,40,000
1,60,000
1,80,000

0
5,00,000
10,00,000
15,00,000
20,00,000
25,00,000
FY14 4,127 16.9
FY18 5,14,000 FY14 24,474 -94.7
FY15 4,916 19.5
FY15 25,163 2.8

Source: Company, Antique

Source: Company, Antique
Source: Company, Antique
FY19 5,51,000 FY16 5,685 13.8 FY16 41,271 64.0

(INR mn)
FY17 5,490 15.5 FY17 35,307 -14.5
FY20 5,45,180
FY18 4,399 9.8 FY18 44,880 27.1

PAT (INR mn)

between FY25E and FY28E
FY21 5,03,100 FY19 5,173 11.2 FY19 46,140 2.8

Revenue (INR mn)

ANTIQUE STOCK BROKING LIMITED

FY20 4,166 8.5 FY20 49,048 6.3

15% between FY25E and FY28E

Exhibit 15: Order Book (INR mn)

FY22 4,58,740
FY21 5,141 12.7 FY21 40,478 -17.5
FY23 4,28,250 FY22 5,957 10.4 FY22 57,333 41.6
FY23 10,727 13.7 FY23 78,272 36.5
FY24 3,42,250
FY24 18,455 19.5 FY24 94,666 20.9
FY25E 3,10,590 FY25E 1,07,575 13.6
FY25E 24,727 23.0
FY26E 1,25,450 16.6
FY26E 6,94,900 FY26E 29,456 23.5
Exhibit 11: Revenue is expected to grow at CAGR of

FY27E 1,48,866 18.7

23.4

Exhibit 13: PAT is expected to grow at CAGR of 17.7%

FY27E 34,770

Margin (%) - RHS

FY28E 1,65,994 11.5
Growth (%) - RHS

FY27E 17,24,494
FY28E 40,531 24.4
-
20
40
60
80

-
FY28E 19,89,865

5
(80)
(60)
(40)
(20)

15
25
(120)
(100)

0
2
4
6
8
10
12
14
0
5
10
10 15
20
25
20 30
35
40
30 45
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000

FY18 FY14 19.72 0.5

(x)
FY15 19.98 0.4 FY14 1,002 0.0
FY19
FY16 24.47 0.6 FY15 2,189 0.1

Source: Company, Antique

Source: Company, Antique
Source: Company, Antique

0.5 FY16
FROM THE RESEARCH DESK

FY20 FY17 20.92 2,208 0.1

FY18 18.16 0.6 FY17 1,243 3.5
FY21 3.3

RoE (%)
FY19 18.53 0.5 FY18 1,487
between FY25E and FY28E

FY19 5.7

Exhibit 16: Book to Bill Ratio

2,612
EBITDA (INR mn)

FY22 FY20 15.51 0.6

FY20 2,626 5.4
FY21 18.69 0.3
FY23 FY21 2,239 5.5
FY22 17.14 0.1
FY22 4,347 7.6
FY24 FY23 28.61 0.1
FY23 7,978 10.2
FY24 37.86 0.1
FY25E FY24 14,116 14.9
FY25E 38.42 0.1 FY25E 23,525 21.9
Exhibit 14: RoE is expected to be 30.7% in FY28E

FY26E FY26E 35.35 0.1 FY26E 27,624 22.0

D/E (x) - RHS

FY27E 32.86 0.0 FY27E 32,782 22.0

FY27E
Margin (%) - RHS
Exhibit 12: EBITDA is expected to grow at CAGR of ~17%

FY28E 30.67 0.0 FY28E 37,666 22.7

-

FY28E
5
10
15
20
25

(5)

0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
12 May 2025 | 15
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 16

Financials
Profit and loss account (INR mn) Cash flow statement (INR mn)
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Net Revenue 94,666 1,07,575 1,25,450 1,48,866 1,65,994 PBT 24,614 33,355 39,274 46,360 54,041
Op. Expenses 80,550 84,050 97,826 1,16,084 1,28,328 Depreciation & amortization 831 1,266 1,573 2,309 2,493
EBITDA 14,116 23,525 27,624 32,782 37,666 Interest expense 51 43 50 50 50
Gross profit 14,116 23,525 27,624 32,782 37,666 (Inc)/Dec in working capital (2,854) 20,007 21,695 28,420 20,788
Depreciation 831 1,266 1,573 2,309 2,493 Tax paid (6,160) (8,628) (9,819) (11,590) (13,510)
EBIT 13,285 22,259 26,052 30,473 35,174 Less: Interest/Div. Income Recd. (11,381) (11,139) (13,273) (15,936) (18,917)
Other income 11,381 11,139 13,273 15,936 18,917 Other operating Cash Flow 1,736 - - - -
Interest Exp. 51 43 50 50 50 CF from operating activities 6,838 34,904 39,501 49,612 44,944
Reported PBT 24,614 33,355 39,274 46,360 54,041 Capital expenditure 2,283 (8,000) (5,000) (12,000) (3,000)
Tax 6,160 8,628 9,819 11,590 13,510 Inc/(Dec) in investments 1,317 - - - -
Reported PAT 18,455 24,727 29,456 34,770 40,531 Add: Interest/Div. Income Recd. 10,599 11,139 13,273 15,936 18,917
Net Profit 18,455 24,727 29,456 34,770 40,531 CF from investing activities 14,198 3,139 8,273 3,936 15,917
Adjusted PAT 18,455 24,727 29,456 34,770 40,531 Dividend Paid (4,426) (7,461) (8,887) (10,481) (12,209)
Adjusted EPS (INR) 45.7 61.3 73.0 86.2 100.5 Others (59) - - - -
CF from financing activities (4,485) (7,461) (8,887) (10,481) (12,209)
Balance sheet (INR mn) Net cash flow 16,550 30,581 38,887 43,067 48,652
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Opening balance 18,684 35,235 65,816 1,04,703 1,47,770
Share capital 2,017 2,017 2,017 2,017 2,017 Closing balance 35,235 65,816 1,04,703 1,47,770 1,96,423
Reserves & Surplus 53,690 70,999 91,618 1,15,957 1,44,328
Networth 55,707 73,016 93,635 1,17,974 1,46,345 Growth indicators (%)
Other Non Current Liabilities 5,711 5,711 5,711 5,711 5,711 Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Net deferred Tax liabilities (5,998) (5,998) (5,998) (5,998) (5,998) Revenue 20.9 13.6 16.6 18.7 11.5
Capital Employed 55,420 72,729 93,348 1,17,687 1,46,058 EBITDA 76.9 66.7 17.4 18.7 14.9
Gross Fixed Assets 12,640 20,640 25,640 37,640 40,640 Adj PAT 72.0 34.0 19.1 18.0 16.6
Accumulated Depreciation 4,444 5,710 7,282 9,591 12,083 Adj EPS 72.0 34.0 19.1 18.0 16.6
Capital work in progress 682 682 682 682 682
Net Fixed Assets 8,879 15,613 19,040 28,732 29,239 Valuation (x)
Intangible Assets 217 217 217 217 217 Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Investments 60 60 60 60 60 P/E (x) 63.5 47.4 39.8 33.7 28.9
Other Non Current Assets 14,725 14,725 14,725 14,725 14,725 P/BV (x) 21.0 16.0 12.5 9.9 8.0
Current Assets, Loans & Adv. 2,57,882 2,94,988 3,54,199 4,23,890 4,92,017 EV/EBITDA (x) 80.5 47.0 38.6 31.2 25.9
Inventory 57,134 58,945 68,740 81,570 90,956 EV/Sales (x) 12.4 10.9 9.3 7.9 7.1
Debtors 18,469 17,684 20,622 24,471 27,287 Dividend Yield (%) (0.4) (0.6) (0.8) (0.9) (1.0)
Bank Balance 1,06,862 1,06,862 1,06,862 1,06,862 1,06,862
Cash 35,235 65,816 1,04,703 1,47,770 1,96,423
Financial ratios
Loans & advances and others 40,183 45,682 53,273 63,217 70,491
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
RoE (%) 37.9 38.4 35.4 32.9 30.7
Current Liabilities & Prov. 2,26,342 2,52,874 2,94,893 3,49,937 3,90,200
RoCE (%) 51.6 52.1 47.4 44.0 41.0
Liabilities 2,24,428 2,50,516 2,92,144 3,46,674 3,86,561
Asset/T.O (x) 2.7 2.2 1.8 1.6 1.4
Provisions 1,914 2,358 2,750 3,263 3,638
EBIT/Interest (x) 481.7 778.5 786.5 928.2 1,081.8
Net Current Assets 31,539 42,114 59,306 73,953 1,01,817
Application of Funds 55,420 72,729 93,348 1,17,687 1,46,058
Margins (%)
Per share data Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
EBITDA Margin (%) 14.9 21.9 22.0 22.0 22.7
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
EBIT Margin 14.0 20.7 20.8 20.5 21.2
No. of shares (mn) 403.4 403.4 403.4 403.4 403.4
PAT Margin 19.5 23.0 23.5 23.4 24.4
Diluted no. of shares (mn) 403.4 403.4 403.4 403.4 403.4
BVPS (INR) 138.1 181.0 232.1 292.5 362.8 Source: Company Antique

CEPS (INR) 47.8 64.4 76.9 91.9 106.7

DPS (INR) 11.1 18.4 21.9 25.9 30.1

Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 17

CMP : INR 1,521 COMPANY UPDATE

Reco
Target Price
: HOLD çè
: INR 1,481 ê
Cochin Shipyards
Target Price Change : -9% Muted order visibility in near-term
Target FY27 P/E (x) : 42
Cochin Shipyards (CSL) has the largest capacity in the country (currently working
EPS Change FY26/ 27 : -2%/ 0% on 47 vessels simultaneously) and is well placed with facilities that are in
close proximity to major international maritime traffic routes on the Indian
Ocean. However, the stock’s fortunes are perceived to be tied to the ordering
of the IAC-2, on which there is lack of consensus in policy circles, leading to
underperformance versus peers. Nevertheless, the company has the
opportunity to lead the high-margin ship-repair business. We maintain our
Sanjeev B Zarbade positive view on the shipyard sector and recommend HOLD rating on the stock
+91 22 6911 3414 with a TP of INR INR 1,481 based on a P/E multiple of 42x core FY27E earnings.
[email protected] CSL has one of the best infrastructure to meet future demand
CSL is the only shipyard in the country to build ships of up to 110,000 DWT and repair ships
of up to 125,000 DWT. The company has dry docks located at strategic locations, which
positions it favorably for future ship-repair business. In 2024, it completed a major capex
program, including construction of a new dry dock costing INR 18 bn and an International
Ship Repair Facility (ISRF) project costing INR 9.7 bn.
Market data
Sensex : 82,430
Best-positioned to lead the ship-repair business
Sector : Defence Though India’s share in global ship repair is less than 1%, the country’s location is favorable
Market Cap (INR bn) : 400.1 with 7% to 9% of the global trade passing within 300 NM of the coastline. The global ship
Market Cap (USD bn) : 4.686
repair market is approximately USD 12 bn and is projected to reach USD 40 bn by 2030.
Additionally, India is poised well to offer repair services to the Indian Navy and its allies: the
O/S Shares (mn) : 263.1
US Navy’s 5th and 7th fleet in the Indian Ocean & Arabian Sea. The company has signed
52-wk HI/LO (INR) : 2979/1168
a Master Shipyard Repairs Agreement with the US Navy, which enables US ships to dock
Avg. Daily Vol ('000) : 2,594 and undergo maintenance refits. We note that the ship-repair business (30%–33% of revenue)
Bloomberg : COCHIN IN is a short-cycle but high margin business (36% EBIT margin in 9MFY25). The investment in a
Source: Bloomberg dedicated ISRF underscores the commitment of CSL in building this revenue segment.
Valuation MoU with Drydocks World, a DP World company
FY26e FY27e FY28e With a view to bring in the best experience and management practices in operating a
EPS (INR) 32.0 39.7 47.0 competitive ship-repair business, CSL has signed a MoU with Drydocks World, a DP World
P/E (x) 47.6 38.3 32.3 company. The MoU also provides for cooperation in potential offshore fabrication opportunities
P/BV (x) 6.7 6.0 5.4 engaging other entities like major ports. This collaboration will explore opportunities to develop
EV/EBITDA (x) 37.1 29.5 24.7 ship repair clusters along India’s coastline leveraging the expertise of both organizations.
Dividend Yield (%) 0.8 1.0 1.2 CSL has signed a MoU with A P Moller-Maersk for developing the ship repair business.
Source: Bloomberg Muted near-term order pipeline due to deferral of IAC-II is weighing on the stock
Returns (%) Given the high capital cost, gestation period, complexity, and frequent maintenance associated
with building and operating an aircraft carrier, there is lack of consensus between the Indian
1m 3m 6m 12m
Navy and the government on the urgency of ordering a third carrier, with media articles
Absolute 9 17 11 24
suggesting that the government may instead prioritize building of nuclear submarines (SSNs).
Relative (1) 8 6 9 However, given that INS Vikramaditya could reach end of its operational life by 2038, the
Source: Bloomberg government may have to order another INS Vikrant-class carrier by 2028–30. This apart, we
Shareholding pattern also understand that CSL may not be in the fray for the next-generation Corvette order. As a
result, the company’s near-term order pipeline remains relatively muted at INR 78 bn,
Promoters : 68% comprising mainly of commercial shipping orders.
Public : 32% Despite muted order book, near-term revenue growth to be healthy, though high
Others : 0% depreciation may dampen earnings growth
Source: Bloomberg CSL’s revenue growth should remain healthy driven by short-cycle orders (FY25 book-to-bill
ratio at 4.8x). It is targeting a sustained EBITDA margin of 20%–22% in the medium-term. We
Price performance vs Nifty note that a rise in the share of ship-repair business can positively rub-off on blended margins.
240 However, higher depreciation may drag earnings growth in FY26 as the company has
210 completed an INR 28 bn capex program in 2024.
180 Investment Summary
150
120 CSL’s present order book stands at INR 225 bn, which provides a revenue visibility of almost
90 five years. As compared to MDL and GRSE, the company’s order pipeline is relatively muted
May-24 Sep-24 Jan-25 May-25 due to the deferral of IAC-II order. As a result, the stock may underperform MDL and GRSE,
Cochin Shipyard NIFTY given inferior revenue visibility. We maintain HOLD rating with a TP of INR 1,481. Upside risk
Source: Bloomberg Indexed to 100 to this call may be triggered if IAC-II receives an Acceptance of Necessity from the DAC.
 FY18 21,120 FY14 1,540 9.3 FY14 16,527 6

FY15 2,543 13.7 FY15 18,595 13

INR mn
FY19 82,860
FY16 2,891 14.5 FY16 19,935 7
FY20 1,46,300 FY17 16.3 FY17 3

Source: Company, Antique

Source: Company, Antique
Source: Company, Antique
3,355 20,589

FY18 3,716 15.8 FY18 23,551 14

FY21 1,22,176

Exhibit 27: Order Book

16.2 3

PAT (INR mn)

FY19 4,812 FY19 29,656

between FY25E and FY28E

between FY25E and FY28E

FY22 1,12,600
18.6 15

Revenue (INR mn)

FY20 6,377 FY20 34,225
ANTIQUE STOCK BROKING LIMITED

FY23 2,14,000 FY21 6,101 21.6 FY21 28,189 -18

FY22 5,866 18.4 FY22 31,900 13

FY24 2,20,000
FY23 2,888 12.4 FY23 23,305 -27
FY25E 2,25,000
FY24 8,131 22.3 FY24 36,453 56

FY26E 2,30,013 FY25E 8,075 19.1 FY25E 42,267 16

Exhibit 25: PAT is expected to grow at CAGR of 15%

FY26E 8,406 16.8 FY26E 49,987 18
FY27E 2,30,977

PAT margin (%) - RHS

Growth (%) - RHS
Exhibit 23: Revenue is expected to grow at CAGR of 17%

FY27E 10,451 17.7 FY27E 59,036 18

FY28E 2,33,042 FY28E 12,372 18.2 FY28E 67,935 15

FY18 0.9
FY14 12% 0.1 FY14 2,210 13.4

(x)
FY19 2.8 FY15 17% 0.1 FY15 3,506 18.9

FY16 17% 0.1 FY16 3,719 18.7

FY20 4.3
FY17 0.1 FY17 19.3

Source: Company, Antique

Source: Company, Antique
Source: Company, Antique

17% 3,979
FROM THE RESEARCH DESK

FY21 4.3 FY18 14% 0.0 FY18 4,400 18.7

RoE (%)
FY19 15% 0.0 FY19 5,737 19.3
FY22 3.5
between FY25E and FY28E

EBITDA (INR mn)

Exhibit 28: Book to Bill Ratio

FY20 18% 0.1 FY20 7,142 20.9

FY23 9.2 FY21 16% 0.1 FY21 7,203 25.6

FY22 14% 0.1 FY22 6,365 20.0

FY24 5.7
FY23 8% 1.1 FY23 2,651 11.4
FY25E 5.3 FY24 17% 1.1 FY24 8,747 24.0
Exhibit 26: RoE is expected to be 18% in FY28E

FY25E 15% 0.9 FY25E 9,197 21.8

FY26E 4.6
D/E (x) - RHS

FY26E 15% 0.8 FY26E 10,647 21.3

Margin (%) - RHS

FY27E 3.9 FY27E 17% 0.7 FY27E 13,192 22.3

Exhibit 24: EBITDA is expected to grow at CAGR of 18.9%

FY28E 18% 0.6 FY28E 15,488 22.8

FY28E 3.4
12 May 2025 | 18
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 19

Financials
Profit and loss account (INR mn) Cash flow statement (INR mn)
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Net Revenue 36,453 42,267 49,987 59,036 67,935 PBT 10,937 10,825 11,268 14,010 16,585
Op. Expenses 27,705 33,070 39,340 45,844 52,447 Depreciation & amortization 569 847 1,718 1,820 1,922
EBITDA 8,747 9,197 10,647 13,192 15,488 Interest expense 315 475 500 500 500
Depreciation 569 847 1,718 1,820 1,922 (Inc)/Dec in working capital (17,937) 7,565 (777) (567) (636)
EBIT 8,178 8,351 8,929 11,372 13,565 Tax paid (2,805) (2,750) (2,862) (3,559) (4,213)
Other income 3,074 2,949 2,839 3,138 3,520 Less: Interest/Div. Income Recd. (3,074) (2,949) (2,839) (3,138) (3,520)
Interest Exp. 315 475 500 500 500 Other operating Cash Flow 10,266 (8,253) (3,698) 154 330
Reported PBT 10,937 10,825 11,268 14,010 16,585 CF from operating activities (1,728) 5,760 3,310 9,221 10,969
Tax 2,805 2,750 2,862 3,559 4,213 Capital expenditure (6,713) (2,000) (2,000) (2,000) (2,000)
Reported PAT 8,131 8,075 8,406 10,451 12,372 Inc/(Dec) in investments 8,423 - - - -
Net Profit 8,131 8,075 8,406 10,451 12,372 Add: Interest/Div. Income Recd. 3,074 2,949 2,839 3,138 3,520
Adjusted PAT 8,131 8,075 8,406 10,451 12,372 CF from investing activities 4,784 949 839 1,138 1,520
Adjusted EPS (INR) 30.9 30.7 32.0 39.7 47.0 Inc/(Dec) in debt (1,028) - - - -
Dividend Paid (2,683) (3,705) (3,862) (4,681) (5,449)
Balance sheet (INR mn) Others 4 - - - -
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e CF from financing activities (3,707) (3,705) (3,862) (4,681) (5,449)
Share capital 1,315 1,315 1,315 1,315 1,315 Net cash flow (651) 3,004 287 5,678 7,040
Reserves & Surplus 48,943 53,789 58,832 65,103 72,526 Opening balance 3,110 2,458 5,462 5,749 11,427
Networth 50,259 55,104 60,147 66,418 73,842 Closing balance 2,458 5,462 5,749 11,427 18,467
Debt 230 230 230 230 230
Other Non Current Liabilities 57,389 49,136 45,439 45,593 45,923 Growth indicators (%)
Net deferred Tax liabilities (596) (596) (596) (596) (596) Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Capital Employed 1,07,282 1,03,874 1,05,220 1,11,645 1,19,399 Revenue 56.4 16.0 18.3 18.1 15.1
Gross Fixed Assets 10,808 32,695 34,695 36,695 38,695 EBITDA 230.0 5.1 15.8 23.9 17.4
Accumulated Depreciation 3,761 4,607 6,326 8,146 10,069 Adj PAT 181.6 -0.7 4.1 24.3 18.4
Capital work in progress 21,887 2,000 2,000 2,000 2,000 Adj EPS 181.6 -0.7 4.1 24.3 18.4
Net Fixed Assets 28,934 30,088 30,369 30,549 30,626
Goodwill 179 179 179 179 179 Valuation (x)
Investments 3,552 3,552 3,552 3,552 3,552 Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Other Non Current Assets 1,466 1,466 1,466 1,466 1,466 P/E (x) 49.2 49.6 47.6 38.3 32.3
Current Assets, Loans & Adv. 84,073 81,255 84,633 93,590 1,03,933 P/BV (x) 8.0 7.3 6.7 6.0 5.4
Inventory 9,589 11,119 13,150 15,530 17,871 EV/EBITDA (x) 45.5 42.9 37.1 29.5 24.7
Debtors 3,348 3,882 4,591 5,422 6,239 EV/Sales (x) 10.7 9.2 7.8 6.6 5.7
Bank Balance 35,381 35,381 35,381 35,381 35,381 Dividend Yield (%) 0.6 0.8 0.8 1.0 1.2
Cash 2,458 5,462 5,749 11,427 18,467
Loans & advances and others 33,297 25,411 25,762 25,829 25,974
Financial ratios
Current Liabilities & Provisions 10,924 12,667 14,980 17,692 20,359
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
RoE (%) 17.2 15.3 14.6 16.5 17.6
Liabilities 4,220 4,893 5,787 6,834 7,865
RoCE (%) 11.3 10.7 11.3 13.4 14.8
Provisions 6,704 7,774 9,193 10,858 12,494
Asset/T.O (x) 0.4 0.4 0.5 0.6 0.6
Net Current Assets 73,149 68,588 69,652 75,898 83,574
Net Debt/Equity (x) 0.0 0.0 0.0 0.0 0.0
Miscellaneous expenses 1 1 1 1 1
EBIT/Interest (x) 35.7 23.8 23.5 29.0 34.2
Application of Funds 1,07,282 1,03,874 1,05,220 1,11,645 1,19,399

Per share data Margins (%)

Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
EBITDA Margin (%) 24.0 21.8 21.3 22.3 22.8
No. of shares (mn) 263.1 263.1 263.1 263.1 263.1
EBIT Margin 22.4 19.8 17.9 19.3 20.0
Diluted no. of shares (mn) 263.1 263.1 263.1 263.1 263.1
PAT Margin 22.3 19.1 16.8 17.7 18.2
BVPS (INR) 191.0 209.5 228.6 252.5 280.7
CEPS (INR) 33.1 33.9 38.5 46.6 54.3 Source: Company Antique

DPS (INR) 9.0 12.3 12.8 15.9 18.8

Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 20

CMP : INR 1,820 COMPANY UPDATE

Reco
Target Price
: BUY çè
: INR 2,024 é
Garden Reach Shipbuilders & Engineers
Target Price Change : 13% Poised to reach greater heights
Target FY27 P/E (x) : 43
Garden Reach Shipbuilders & Engineers (GRSE) holds the distinction of being
EPS Change FY26/ 27 : -2%/ 30%
the first shipyard in the country to export warships. The company can build
warships of the size of frigates, but its forte lies in building smaller vessels
for the Navy and Coast Guard. We estimate the company’s order pipeline to
be worth about INR 1.2 trn, which is lined up for execution in the next two
years, and is equivalent to 5.0x its current order book. In the near-term, the
Sanjeev B Zarbade
+91 22 6911 3414 company hopes to win repeat orders for next-generation Corvettes. On the
[email protected] non-defence front, the focus is on ship building and green energy platforms
such as hybrid ferries, green tugs, which offer decent opportunities for growth.
We retain our positive view on the stock and recommend BUY rating with a TP
of INR 2,024 based on a core target P/E multiple of 43x FY27 earnings.

Market data Strong order book position

Sensex : 82,430 GRSE’s present order book stands at INR 238.8 bn with major projects on track to be executed
Sector : Defence in the next 3–4 years (current order book comprises of 10 projects with 40 different platforms,
Market Cap (INR bn) : 208.6
including four export projects spanning 10 platforms). It comprises of three P17A stealth
Market Cap (USD bn) : 2.444
O/S Shares (mn) : 114.6
frigates (all three are scheduled for delivery in FY26E/ FY27E), eight anti-submarine warfare
52-wk HI/LO (INR) : 2835/890 shallow water crafts, a survey vessel large project, and next-generation offshore patrol vessels.
Avg. Daily Vol ('000) : 3,282 The export order book comprise of two projects for the Government of Bangladesh and six
Bloomberg : GRSE IN multi-purpose vessels for a German client.
Source: Bloomberg
Awarding of NGCs to be the next near-term catalyst for the stock
Valuation
FY26e FY27e FY28e The company has submitted bids for next-generation Corvettes (INR 360 bn). The order
EPS (INR) 48.8 62.5 73.8 consists of eight ships—five would be awarded to the L1 bidder and three to the L2 bidder.
P/E (x) 37.3 29.1 24.7 L1 and L2 status is expected to be declared in FY26 as RFP has been issued in FY25.
P/BV (x) 8.9 7.3 6.1
Additionally, a large order of P17 bravo Frigates with potential order size of INR 700 bn is
EV/EBITDA (x) 40.1 30.8 25.9
Dividend Yield (%) 0.8 1.0 1.2
expected to be finalized by FY26 end, which on successful bidding can substantially increase
Source: Bloomberg
the order book.
Returns (%) Augmenting capacity to meet robust demand
1m 3m 6m 12m
GRSE is upgrading existing infrastructure to build 28 vessels (from 24/20 vessels in H1FY25
Absolute 13 29 25 100
Relative 3 19 19 76
and FY24, resp) concurrently by FY25. These enhancements are expected to significantly
Source: Bloomberg boost production capabilities, enabling it to reduce delivery time, bid for larger orders, and
also improve productivity (a weakness of Indian shipbuilders). In investor interactions,
Shareholding pattern
management has indicated that it is having to decline some orders due to capacity constraints.
Promoters : 75%
Public : 20% Strong earnings growth in FY26–27
Others : 5% GRSE is aiming to deliver two frigates of P17A over the next twelve months, making FY26 a
Source: Bloomberg strong year in terms of revenue. We expect this to have a positive rub-off on EBITDA margin
Price performance vs Nifty as well. Overall, we expect strong PAT growth in FY26E and FY27E.
320
Investment Summary
260
200 GRSE’s present order book stands at INR 238.8 bn with major projects on track to be executed
140 in the next 3–4 years. We see the company favorably positioned for two large orders (NGC
80
and P17B) totaling INR 1.06 trn, which can be placed in the next 24 months. We like the
May-24 Sep-24 Jan-25 May-25
Garden Reach NIFTY company’s growth prospects and recommend BUY with a TP of INR 2,024, based on a core
Source: Bloomberg Indexed to 100 target P/E multiple of 43x FY27 earnings.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 21

Exhibit 17: Revenue is expected to grow at CAGR of 28% Exhibit 18: EBITDA is expected to grow at CAGR of 39%
between FY25E and FY28E between FY25E and FY28E
1,20,000 80 10,000 10

57.9
54.1

5.3

3.0

2.8
45.7
45.2
8,000

7.5
40.3

8.0
1,00,000 60 5

2,953 6.2
32.2

-1.1

6.5

6.9
1,693 5.8

8.0
6.3
6,000
40 0
80,000

12.0

2,342
1,397
4,000
20
3.4
3.0

874
-5

5,192

6,747

8,042
720
-16.5

421

404
16,620 -28.1

11,408 -20.4

19.7
60,000 2,000
9,293 -44.1

25,611
- -10

17,544
-
14,333
13,864
13,497

40,000
(20)

(149)
1,00,526
(2,000) -15

35,926
47,500
74,979
89,718

FY17 (1,536)
20,000 (40)
(4,000) -20
- (60)

FY16

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25E

FY26E

FY27E

FY28E
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
FY27E
FY28E
Revenue (INR mn) Growth (%) - RHS EBITDA (INR mn) Margin (%) - RHS
Source: Company, Antique Source: Company, Antique

Exhibit 19: PAT is expected to grow at CAGR of 28

between FY25E and FY28E Exhibit 20: RoE is Expected to be ~26.9% in FY28E
9,000 16 30 0.3

0.3
11.9

8,000 14

0.2
25 0.3
14.7

10.8

0.2
7,000 12
9.9
9.5

20 0.2
8.9

6,000
8.4
8.4

10
8.0

8.0
7.5
7.1

5,000
8 15 0.2
0.1
4,000
0.1

0.1
1,895
1,705

6
1,672
1,582

0.0
0.0

0.0
10 0.1

0.0
0.0

0.0
3,000
0.0
1,114
190 2.0

4
962

2,000
1.8
2,281

3,574

3,988

5,593

7,160

8,458

5 0.1
13.9

10.7

16.4

14.7

15.5

17.1

23.2

22.0

26.0

27.6

26.9
9.4

1,000 2

- 0 0 0.0
FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25E

FY26E

FY27E

FY28E
FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25E

FY26E

FY27E

FY28E

PAT (INR mn) Margin (%) - RHS RoE (%) D/E (x)
Source: Company, Antique Source: Company, Antique

Exhibit 21: Order Book Exhibit 22: Book to Bill Ratio

7,00,000 25.0
INR mn (x)
6,00,000
20.0
5,00,000

4,00,000 15.0

3,00,000
10.0
2,00,000
5.0
1,00,000

- 0.0
FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25E

FY26E

FY27E

FY28E

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25E

FY26E

FY27E

FY28E

Source: Company, Antique Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 22

Financials
Profit and loss account (INR mn) Cash flow statement (INR mn)
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Net Revenue 35,926 47,500 74,979 89,718 1,00,526 PBT 4,810 5,337 7,457 9,547 11,277
Op. Expenses 33,585 44,547 69,787 82,971 92,484 Depreciation & amortization 413 435 463 491 519
EBITDA 2,342 2,953 5,192 6,747 8,042 Interest expense 115 120 13 13 13
Gross profit 2,342 2,953 5,192 6,747 8,042 (Inc)/Dec in working capital (8,696) (8,187) (3,939) 19,388 (4,224)
Depreciation 413 435 463 491 519 Tax paid (1,237) (1,350) (1,864) (2,387) (2,819)
EBIT 1,929 2,518 4,730 6,256 7,523 Less: Interest/Div. Income Recd. (2,996) (2,939) (2,740) (3,304) (3,767)
Other income 2,996 2,939 2,740 3,304 3,767 Other operating Cash Flow 522 - - - -
Interest Exp. 115 120 13 13 13 CF from operating activities (7,068) (6,584) (610) 23,748 999
Reported PBT 4,810 5,337 7,457 9,547 11,277 Capital expenditure (295) (500) (500) (500) (500)
Tax 1,237 1,350 1,864 2,387 2,819 Inc/(Dec) in investments 8,324 6,151 - - -
Reported PAT 3,574 3,988 5,593 7,160 8,458 Add: Interest/Div. Income Recd. 2,527 2,939 2,740 3,304 3,767
Net Profit 3,574 3,988 5,593 7,160 8,458 CF from investing activities 10,557 8,590 2,240 2,804 3,267
Adjusted PAT 3,574 3,988 5,593 7,160 8,458 Inc/(Dec) in debt (2,456) 0 (0) - -
Adjusted EPS (INR) 31.2 34.8 48.8 62.5 73.8 Dividend Paid (1,102) (1,316) (1,691) (2,161) (2,550)
Others (17) - - - -
Balance sheet (INR mn) CF from financing activities (3,575) (1,316) (1,691) (2,161) (2,550)
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Net cash flow (87) 689 (61) 24,391 1,716
Share capital 1,146 1,146 1,146 1,146 1,146 Opening balance 43,279 54 744 682 25,073
Reserves & Surplus 15,589 18,380 22,295 27,307 33,227 Closing balance 54 744 682 25,073 26,789
Networth 16,734 19,526 23,440 28,452 34,373
Debt 556 556 556 556 556 Growth indicators (%)
Other Non Current Liabilities 101 101 101 101 101 Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Net deferred Tax liabilities 140 140 140 140 140 Revenue 40.3 32.2 57.9 19.7 12.0
Capital Employed 17,531 20,323 24,237 29,249 35,169 EBITDA 38.3 26.1 75.8 29.9 19.2
Gross Fixed Assets 7,239 7,738 8,239 8,739 9,239 Adj PAT 56.7 11.6 40.2 28.0 18.1
Accumulated Depreciation 2,389 2,824 3,286 3,778 4,297 Adj EPS 56.7 11.6 40.2 28.0 18.1
Capital work in progress 116 116 116 116 116
Net Fixed Assets 4,966 5,031 5,068 5,077 5,058 Valuation (x)
Intangible Assets 207 207 207 207 207 Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
Other Non Current Assets 5,113 5,113 5,113 5,113 5,113 P/E (x) 58.3 52.3 37.3 29.1 24.7
Current Assets, Loans & Adv. 92,234 97,469 1,14,776 1,43,210 1,55,423 P/BV (x) 12.5 10.7 8.9 7.3 6.1
Inventory 39,844 45,547 56,491 55,306 61,968 EV/EBITDA (x) 88.8 70.5 40.1 30.8 25.9
Debtors 1,942 2,603 4,108 4,916 5,508 EV/Sales (x) 5.8 4.4 2.8 2.3 2.1
Bank Balance 37,151 31,000 31,000 31,000 31,000 Dividend Yield (%) 0.5 0.6 0.8 1.0 1.2
Cash & Bank balance 54 744 682 25,073 26,789
Loans & advances and others 13,243 17,575 22,494 26,915 30,158
Financial ratios
Current Liabilities & Provisions 84,988 87,496 1,00,926 1,24,357 1,30,631
Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
RoE (%) 23.2 22.0 26.0 27.6 26.9
Liabilities 83,687 86,196 99,626 1,23,057 1,29,330
RoCE (%) 28.2 28.8 33.5 35.7 35.1
Provisions 1,300 1,300 1,300 1,300 1,300
Asset/T.O (x) 3.3 3.5 4.4 4.2 3.7
Net Current Assets 7,246 9,972 13,850 18,853 24,793
Net Debt/Equity (x) 0.0 0.0 0.0 0.0 0.0
Net Miscellaneous expenses (1) (1) (1) (1) (1)
EBIT/Interest (x) 42.9 45.6 568.7 727.8 859.5
Application of Funds 17,531 20,323 24,237 29,249 35,169

Per share data Margins (%)

Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e Year ended 31 Mar FY24 FY25e FY26e FY27e FY28e
EBITDA Margin (%) 6.5 6.2 6.9 7.5 8.0
No. of shares (mn) 114.6 114.6 114.6 114.6 114.6
EBIT Margin 5.4 5.3 6.3 7.0 7.5
Diluted no. of shares (mn) 114.6 114.6 114.6 114.6 114.6
PAT Margin 9.9 8.4 7.5 8.0 8.4
BVPS (INR) 146.1 170.5 204.6 248.4 300.1
CEPS (INR) 34.8 38.6 52.9 66.8 78.4 Source: Company Antique

DPS (INR) 8.6 10.4 14.6 18.8 22.1

Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 23

Annexure
Table 8: Major Indian Warships
INS Vikrant (IAC-I): Cost INR 230 bn
Displacement -45000 tons
Length – 263 mtr
Propulsion – GE LM2500 Gas Turbine

P15B Destroyer: Cost approx. INR 110 bn

Displacement – 7,300 tons
Length – 163 mtr
Propulsion – 2 Zorya GTs
Role – For long range operations, heavily armed and
part of Carrier group

P17A Frigates: Cost approx. INR 47 bn.

Displacement – 6,670 tons
Length – 149 mtr
Propulsion – 2x GE LM2500 GTs made by HAL
Role – Escorting aircraft carriers

Corvettes: Cost approx. INR 29 bn

Displacement – 3,300 tons
Length – 109 mtr
Propulsion – 4 Diesel Engines from Man Diesel.
Role – Coastal defence and anti-submarine warfare

Kalvari-class Submarine: Cost INR 100-120 bn

Displacement – 1,800 tons
Length – 70 mtr
Propulsion – 2x diesel engines from Man Diesel

Source: Industry, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 24

The naval ship building ordering procedure

The need for a new warship evolves from the Maritime Capability Perspective Plan (MCPP) of
the Navy. Acceptance of Necessity (AON) for the project is accorded by Defence Acquisition
Council (DAC) based on a paper prepared by Principal Staff Officer amplifying the
development of need for the warship/ project. This paper contains Outline Staff Requirements
and a concept design with broad category of weapons and sensors to be fitted on the ship
along with the status of their indigenous development if applicable, operational necessity,
approximate cost, and budgetary provisions. On AON being accorded, IHQ MoD (N) carries
out a capacity assessment of the shipyards in consultation with the Department of Defence
Production (DDP) and forwards recommendations on the nomination of a single shipyard or
more than one shipyard with allocation of the number of ships for each yard.

Table 9: Stages in contract finalisation

Acceptance of necessity

ê
Preliminary Staff requirement

ê
Nomination of Shipyard

ê
Preliminary Design

ê
Budgetary Cost

ê
Price negotiations

ê
Approval of CFA

ê
Issuance of LOI and Mobilization Advance

ê
Contract Conclusion

ê
Source: Ministry of Defence

Submarine building stages

The production of modern ships/ submarines starts in fabrication yards where plate cutting is
done and sheets are fabricated into hull sections. These sections are then lowered into a dry
dock for joining into a single unit. This event is recognized as the keel laying and is an
important ceremonial event often marked by presence of dignitaries. After the modules are
joined, the submarine is sailed out (launched) of the dry dock on a floating dock for outfitting
(involves finishing work, plumbing, electrical, and equipment testing). The vacant dry dock
can then be utilized for building next submarine.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 25

Table 10: Stages in submarine constructure

Fabrication of sections Lifting of joined sections

Installation of torpedo tubes Propeller installation

Outfitting on a floating dock Setting afloat for sea trials

Source: FICCI Report

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 26

Air Independent Propulsion

Air Independent Propulsion (AIP) is a marine propulsion technology that allows a non-nuclear
submarine to operate submerged for extended periods without surfacing or using a snorkel to
access atmospheric oxygen. Modern non-nuclear submarines are potentially stealthier than
nuclear submarines; a nuclear ship’s reactor must constantly pump coolant, generating some
amount of detectable noise. Non-nuclear submarines running on battery power or AIP, on the
other hand, can be virtually silent. The AIP enhances the underwater endurance time of the
submarine by about 10%-15%. AIP is usually implemented as a supplementary source of
power, with the traditional diesel engine handling surface propulsion. Most such systems
generate electricity which in turn drives an electric motor for propulsion or recharges the
boat’s batteries.
The reason we are discussing the AIP technology is that it is the central feature (and a
deciding factor) of the P-75I programme, which requires this tech to be developed specifically
to meet the stringent requirements of the P-75I submarines whose displacement is expected to
be more than 3000 tonnes. The German AIP systems that were demonstrated to India were
fitted in TKMS HDW Class 214 submarines, which has a displacement of only 2000 tonnes.
The other contender in the race, L&T/Spain’s Navantia combine’s bid lost out as Navantia
failed to provide a sea-proven and operational AIP model. TKMS’ AIP is based on Li-Ion
batteries while the ones to be fitted on future Kalvari-class submarines would be having the
DRDO developed AIP model, based on Phosphoric Acid Fuel Cell technology. Going ahead,
the six operational Kalvari-class submarines would also house the AIP technology.

Exhibit 29: AIP system insert.

Source: Industry; https://www.ensureias.com/blog/current-affairs/air-independent-propulsion—aip—technology

Table 11: Comparison of fleet size

Type of Vessel Pakistan India China US
Coastline kms 1046 7500 14500 19900
Aircraft Carriers 0 2 3 11
Destroyers 2 13 47 76
Cruisers 0 0 0 9
Frigates 9 14 49 0
Corvettes 7 18 50 26
Submarines 8 19 73 68
Source: WDMMW

Table 12: Addition of vessels by the Indian Navy

Nos 2000-10 2010-20 2020-25 Under Construction GoI-Approved/Planned
Destroyers 1 3 4 0 6
Submarines - Diesel Electric 0 2 4 0 12
Submarines - Nuclear 0 1 1 1 2
Frigates 5 5 2 6 0
Corvettes 5 3 0 0 8
Aircraft Carrier 0 1 1 0 1
Total 11 15 12 7 29
Source: Antique Research and Industry
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 12 May 2025 | 27

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of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted
onward to any U.S. person, which is not the Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order
to conduct certain business with Major Institutional Investors, Antique Stock Broking Limited has entered into a chaperoning agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo").
Transactions in securities discussed in this research report should be effected through Marco Polo or another U.S. registered broker dealer.
Compliance/Grievance officer: Ms. Jayshree Thakkar, Contact No: 022-69113461, Email id: [email protected]/[email protected]
Disclaimer that:
l Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
l The securities quoted are for illustration only and are not recommendatory.
l Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Antique Stock Broking Limited

ITI House
36, Dr. R.K. Shirodkar Marg
Parel (East), Mumbai 400012
Tel. : +91 22 6911 3300 / +91 22 6909 3600
www.antiquelimited.com