Broking Firm Initiates Buy On Construction Sector Midcap Stock, Likely To Give 24% Return

Broking firm Keynote Capitals has a Buy on G R Infraprojects Limited (GRIL) with a positive outlook. It has assigned a target price of Rs. 1,363 apiece. Considering the given target price and the current market price, it can fetch up to 24% return. This is a construction sector midcap company with a target price of Rs. 10,712.18 crore.

Targeting Rs. 200 Bn order inflow in FY24

According to the brokerage, In FY23, the Company successfully achieved its order inflow target of Rs. 150 Bn. Looking ahead to FY24, GRIL expects an order inflow of ~Rs. 200 Bn, with ~50% coming from HAM projects, 35% from EPC projects, and 15% from other sectors. Furthermore, the size of railway EPC projects is increasing, with the project values expanding from ~Rs. 2-3 Bn to ~Rs. 8-10 Bn. The Company anticipates that its diversification efforts will contribute materially, providing additional benefits to the overall business.

View & Valuation

The brokerage said, "Based on our revised estimates, we maintain our view on GRIL with a BUY rating and a target price of Rs. 1,363, using the SOTP valuation method, resulting in a ~24% upside from current levels."

Stock Outlook

On Tuesday, the stock closed 1.55% higher at Rs. 1,107.90 apiece. Its 52 week high is Rs. 1,464.90 apiece and 52-week low is Rs. 930 apiece, respectively. It was listed on 19 July 2021.

The stock since its listing has given 36.59% negative return. It jumped 4.29% in 1 week, and 13.2% in 1 month. It has fallen 21.67% in the past 1 year.

Disclaimer - The stock has been picked from the brokerage report of Keynote Capitals. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.