Multibagger Small Cap Stock Under Rs 40 Hits Upper Circuit On Rs 2,469 Cr Order Win

Shares of Small Cap company GMR Power and Urban Infra Limited on Thursday hit fresh 52-week high and a day before hit upper circuit. Earlier, GMR Power received Letter of Intent (LoI) from Dakshinanchal Vidyut Vitran Nigam Limited to install, integrate, and maintain 75.69 lakh smart meters in various zones of Uttar Pradesh. Total contract value (inclusive of GST) is approximately Rs 2,469.71 crore. Current market price of GMR Power share is Rs 38.67 per share with intraday gain of 5.68% on BSE. GMR Power shares rallied 55% in last 2-weeks and soared 122% in last 3-months. Check details below:

GMR Power Rallies After Bagging New Order Worth Rs 2469 Crore: According to the BSE filing of the company dated September 13, 2023, "This is to inform you that vide our letter dated July 13, 2023 we intimated regarding receipt of Letter of Intent ('LOI') by GMR Smart Electricity Distribution Private Limited (GSEDPL), erstwhile stepdown subsidiary of GMR Power and Urban Infra Limited, to install, integrate and maintain 75.69 lakh smart meters for the following Zones of U.P.:

i. Purvanchal Vidyut Vitran Nigam Limited (PuVNL) for two zones (Varanasi, Azamgarh zone & Prayagraj, Mirzapur zone) and

ii. Dakshinanchal Vidyut Vitran Nigam Limited (Agra and Aligarh zone).

The implementation tenure is expected to be 27 months from the date of execution of the contract and an operating period of 93 months. The total contract value (inclusive of GST) for Agra & Aligarh Zone is about INR 2469.71 Crores.

GMR Power Stock Outlook & Return: Current market price of GMR Power stock is Rs 38.69 per share on BSE. Its 52-week high price is Rs 39.39 and 52-week low price is Rs 14.32 per share, respectively. Its market capitalisation is Rs 2335.31 crore. GMR Power stock 118% in last 6-months, soared 65% YTD, and offered a return of 42% in last 1-year.

GMR Power Financials: GMR Power and Urban Infra Ltd for the June quarter announced a net loss of Rs 217 crore. It had registered a net profit of Rs 201 crore in the year-ago period, as per the company's regulatory filing. Its total income soared to Rs 1,190 crore in the first quarter of the current fiscal from Rs 1,163 crore a year ago.

GMR Power About: GMR Power and Urban Infra Limited (GPUIL), a subsidiary of GEPL holds expertise in the sectors of energy, urban infrastructure and transportation. GMR energy sector has an installed capacity of over 3000 MW and has a balanced fuel mix of coal, gas, LSHS as well as renewable sources of wind and solar energy. Apart from this, plants of over 1000 MW generation capacity are under various stages of development in India and Nepal, according to its official website.

Disclaimer

The stock just highlights the rally in shares after order win and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.