G R Infraprojects (GRIL) is a premier EPC company with a dominant presence in the roads segment. It has been an arduous journey with many milestones, whose financial imprint is clear: a CAGR of about 30% each in revenue/EBITDA/PAT over FY11–21, best-in-class working capital cycle, low leverage (~0.2x) and high RoEs (20%-plus). Our bullish view on GRIL is built on its road map—segmental diversification and strong cash flow. While a large base will moderate revenue/PAT CAGR to 14%/12% over FY21–24E (FY21 EBITDA included ~INR2.1bn bonus) with RoEs in high teens, GRIL has miles to cover still.
OutlookInitiate at ‘BUY’ with an SoTP-based TP of INR2,083. Watch out for pace of segmental diversification.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
