Multibagger smart meter manufacturing stock hit 52-week high as it bags orders worth Rs 7,593.08 crore from Dakshinanchal Vidyut Vitran Nigam Ltd & Purvanchal Vidyut Vitran Nigam Ltd
The stock gave multibagger returns of 400 per cent in just 1 year whereas BSE Small-cap Index is up by 61 per cent.
In a significant development for GMR Smart Electricity Distribution Private Limited (GSEDPL), a subsidiary of GMR Power and Urban Infra Limited, the company has secured contracts for large-scale smart metering projects in Uttar Pradesh, India. These projects were awarded following Letters of Award (LOA) received in September 2023 from Purvanchal Vidyut Vitran Nigam Limited (PuVNL) and Dakshinanchal Vidyut Vitran Nigam Limited.
The project scope encompasses a staggering 75.69 lakh (7.569 million) smart meters to be installed across four zones in Uttar Pradesh. To ensure successful execution, GSEDPL has formed three Special Purpose Vehicles (SPVs) dedicated to managing these projects. Additionally, GSEDPL has partnered with Bosch Global Software Technologies (BGSW), a recognized leader in smart metering system architecture. BGSW will not only contribute its expertise in the Internet of Things (IoT) and connected products but will also invest 10% equity capital in each of the three project SPVs. GSEDPL will hold the remaining 90% equity.
The project breakdown reveals individual details for each zone. In Dakshinanchal (Agra and Aligarh), GSEDPL will install 25.52 lakh smart meters with a project value of Rs 2,469.71 crore (inclusive of GST). The implementation period is estimated at 27 months, followed by a 93-month operation period. For Purvanchal, the project encompasses two zones: Varanasi & Azamgarh and Prayagraj & Mirzapur. Here, a total of 50.17 lakh smart meters will be installed. The project value for Prayagraj & Mirzapur is Rs 2,386.72 crore, and for Varanasi & Azamgarh, it is Rs 2,736.65 crore (inclusive of GST) in both cases. The implementation and operation timelines mirror those of Dakshinanchal.
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GMR Power & Urban Infra Ltd (GPUIL), a subsidiary of the GMR Group, is a leading Indian company with expertise in energy, urban infrastructure, and transportation. They operate across three main business segments: energy generation with a balanced fuel mix including coal, gas, hydro, solar, and wind; road and transportation projects encompassing highways, railways, metros, and airstrips; and Engineering, Procurement, and Construction (EPC) services for various infrastructure sectors. Currently, energy is their biggest revenue driver, followed by roads & transportation, and then EPC. They have a strong track record with over 3,000 MW of installed power generation capacity and over 1,800 lane kilometres of operational roads & highways. Notably, they are nearing completion of a major EPC project for a section of the Eastern Dedicated Freight Corridor.
On Friday, shares of GMR Power and Urban Infra Limited zoomed 3.81 per cent and made a fresh new 52-week Rs 98 per share from its previous closing of Rs 94.40. At the closing bell, the stock was locked in a 5 per cent lower circuit to Rs 89.68 per share. The stock gave multibagger returns of 400 per cent in just 1 year whereas BSE Small-Cap Index is up by 61 per cent. Investors should keep an eye on this multibagger small-cap stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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