ICICI Securities research report on GR Infraprojects
GR Infraprojects (GRInfra) has grown its orderbook sharply in the last few quarters. Orderbook was below 2x in the last few years leading to sub-optimal growth. With robust order inflow worth INR 150bn in FY23 and INR 18bn in Q1FY24, orderbook stands healthy at INR 268bn as of Jun’23. The new order inflow caters to diverse segments like roads, ropeways, tunnelling works, logistics park, etc. Given the strong order inflow and book-to-bill ratio of 3.4x, we believe execution may pick up and expect revenue and PAT CAGRs of 12% and 16% over FY23-FY25E. Moreover, it has a healthy operational portfolio of 7 HAM projects with equity infusion of INR 20bn, which it is looking to divest through INVIT.
Outlook
We reinitiate coverage on GRInfra with BUY rating and an SOTP-based target price of INR 1,621/share.
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