GMR Power Jumps After B&K Securities Initiates ‘Buy’ Rating
B&K Securities initiated a ‘buy’ with a target price of Rs 184, an upside potential of 37% from the previous close.
GMR Power and Urban Infra Ltd shares gained 5% in the early morning deals on BSE on Tuesday after analysts at B&K Securities initiated a ‘buy’ coverage on the stock.
The stock opened 4.8% higher at Rs 140.95 before gaining further to hit the day's peak at Rs 141.15 apiece on the BSE.
Analysts at B&K Securities initiated a ‘buy’ rating on this GRM Group company with a target price of Rs 184, an upside potential of 37% from the previous closing of Rs 134.45.
This positive outlook is driven by analysts’ belief that the government’s renewed emphasis on thermal power positions the company well for future growth.
B&K Securities highlighted that GMR Power and Urban Infra is expanding its portfolio by entering the smart meter sector.
Analysts are upbeat about the company’s strategic shift, which includes a focus on energy generation, utility services and EV charging. GMR Power has strengthened its balance sheet through favourable settlements.
Looking ahead, analysts are optimistic about the company's ability to strengthen and sustain its financial performance.
In the June 2024 quarter, GMR Power and Urban Infra’s consolidated total income surged 45.8% year-on-year to Rs 1,735.22 crore, up from Rs 1,190.42 crore in the June 2023 quarter. The company also reported a profit of Rs 1,362.11 crore for Q1FY25, marking a significant turnaround from a loss of Rs 201.54 crore in the same period last year.
Year-to-date, this midcap stock has more than doubled, soaring by 140%. On August 30, GMR Power shares reached a 52-week high of Rs 140 per share.
GMR Power and Urban Infra specialises in sectors such as energy, urban infrastructure and transportation. The company was established in 2022 after the demerger of GMR Infrastructure (GIL), with a dedicated focus on the energy, EPC (Engineering, Procurement, and Construction), and transportation businesses.
