GR Infra Q3 Results Review - Focus On New Order Inflows; Execution To Be Muted In Near Term: Motilal Oswal

Motilal Oswal Report

GR Infraprojects Ltd.'s Revenue decreased 5% YoY to ~Rs 18 billion in Q3 FY24 and was slightly lower than our estimate of Rs 18.7 billion. Revenue grew 15% QoQ. Execution was impacted by a delay in the receipt of appointed dates for several projects.

Revenue growth and margins are expected to be muted in FY24 and FY25 and improve materially in FY26. GR Infra is looking to diversify its order book and bid for projects in transmission, ropeway, tunneling and multi-modal logistics parks.

To incorporate the weak performance and a subdued medium-term outlook, we cut our FY24/FY25/FY26 earning per share estimates by ~7%/15%/1%. We expect GR Infra to clock a 5% revenue compound annual growth rate over FY23-26, with Ebitda margin in the range of 13-14%.

We retain our 'Buy' rating with a revised target price of Rs 1,390 based on an sum of the parts valuation.

Click on the attachment to read the full report:

DISCLAIMER

This 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.