Buy GR Infraprojects; target of Rs 1,420: ICICI Securities

Buy

ICICI Securitie`s research report on GR Infraprojects

GR Infra continues to tread water on order inflow front, with total OI of INR 140bn in FY25 & FY24 combined - matching FY23’s tally as the ordering in roads remained subdued. The impact was visible in FY25, with revenue declining 16% YoY to INR 65bn. EBITDA took a 20% hit to INR 9bn, as margin slipped 70bps. Adjusted PAT increased 31% YoY to INR 7.8bn. The executable orderbook holds steady at INR 140bn.

Outlook

With appointed dates likely for two projects by Q3FY26 and L1 status secured in four projects worth INR 52bn, GR Infra may soon see improvement in its OB. A robust INR 1.8trn tender pipeline offers opportunity for OI to pick up pace, aiding the company to deliver on its 10–15% revenue growth guidance for FY26. The stock is currently trading at 5x FY27E (considering 2x exit multiple on its HAM portfolio). We maintain BUY with a revised SoTP-based TP of INR 1,420 per share (vs. INR 1,329 earlier).

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