Rs 21,126.7 crore order book and FIIs & DIIs increase stake; This Company Emerges as Selected Bidder for Agra-Gwalior Greenfield Road Project Worth Rs 4,262.78 crore From NHAI

With a PE ratio of 9.9x, the company trades at a discount compared to the industry PE of 18.1x. The company has ROCE of 16.9 per cent and ROE of 15.6 per cent.  

G R Infraprojects Ltd has been declared the selected bidder in the financial bid opening for a National Highways Authority of India (NHAI) project under the Ministry of Road, Transport & Highways.

The project involves the construction and improvement of the Agra-Gwalior Greenfield Road with a contract value of Rs 4,262.78 crore. It will be executed under the Design, Build, Finance, Operate, and Transfer (DBFOT) pattern at BOT (Toll) mode.

The scope of the project includes:

• Section 1: Development of a six-lane access-controlled greenfield highway from design km 0+000 (near Deori village, Agra district) to design km 88+400 (near Susera village, Gwalior district) across Uttar Pradesh, Rajasthan, and Madhya Pradesh.
• Section 2: Overlay/strengthening, road safety, and improvement works on the existing Agra-Gwalior section from km 1058.00 to km 1148.00 (design chainage 13.00 to 103.00) of NH-44 in the same states.

The project has a completion period of 910 days from the appointed date.

Incorporated in the year 1995, G R Infraprojects Ltd is an integrated road Engineering, Procurement, Construction company (EPC) with experience in the design and construction of various road/highway projects across 15 States in India. It mainly undertakes civil construction projects under the EPC and BOT (Build Operate Transfer) basis in the road sector. 

G R Infraprojects Ltd has a market capitalisation of Rs 9,298  crore and is currently trading at Rs 962 per share. The stock has reached a 52-week high of Rs 1,860 and a low of Rs 955. The one-year return is -20 per cent. 

In the Quarterly Results of December 2024, the company reported revenue of Rs 1,694.50 crore, reflecting a decline of 20.60 per cent YoY but an increase of 21.53 per cent QoQ. The net profit stood at Rs 261.71 crore, marking a growth of 7.82 per cent YoY and 35.40 per cent QoQ. The net profit margin improved to 15.44 per cent from 13.86 per cent in the previous quarter and 11.37 per cent in the same quarter last year.

For the full financial year FY24, revenue was Rs 8,980.15 crore, registering a decline of 5.29 per cent compared to FY23. The net profit for FY24 stood at Rs 1,164.37 crore, down by 33.62 per cent from the previous year. The net profit margin was 10.11 per cent in FY24, lower than 14.42 per cent recorded in FY23.

As of December 2024, the shareholding pattern stands as follows: Promoters hold 74.70 per cent, FIIs hold 2.54 per cent, DIIs hold 19.77 per cent, and the public holds 2.97 per cent. There is a notable increase in FIIs' stake from 2.07 per cent in September 2024 to 2.54 per cent in December 2024.

With a PE ratio of 9.9x, the company trades at a discount compared to the industry PE of 18.1x. The company has ROCE of 16.9 per cent and ROE of 15.6 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.