This S&P BSE Smallcap stock hit its 20% upper circuit within the first hour of market open on Monday, supported by volumes that were 1.5x previous session’s volume and 5x the monthly average volume.
The company rose sharply owing to two orders it received that are on aggregate basis ~2.7x its market cap which is Rs. 2,070 crore. The stock is locked in 42% above its 20 day moving average and 70% above its 200 day moving average.
GMR Power & Urban Infra Ltd (“GMR”), in its filing dated 3rd September 2023, stated that it has received through a step down subsidiary – GMR Smart Electricity Distribution Private Limited (GSEDPL) two orders in the form of Letter of Agreements (“LOA”) for smart metering projects from Purvanchal Vidyut Vitran Nigam Limited to implement smart metering project in the Purvanchal (Varanasi, Azamgarh zone and Prayagraj, Mirzapur zone) area of Uttar Pradesh.
According to the filing, GSEDPL will install, integrate and maintain 50.2 lakh smart meters. The contract value for this project is Rs. 2,387 crore.
As for the second project, the company expects a similar LOA from Dakshinanchal Vidyut Vitran Nigam Limited to implement a smart metering project in the Dakshinanchal (Agra and Aligarh zone) area of 25.5 lakh.
The implementation tenure for the projects is expected to be 27 months from the date of execution of the contract and an operating period of 93 months. The contract value for this project is Rs. 2736.65 crore.
GMR Power and Urban Infra Limited engages in the energy, urban infrastructure, and transportation businesses in India. The stock is a 3 month multibagger, returning 101%. Meaning, if you invested Rs. 1 lakh into GMR 3 months ago, it would now be worth Rs. 2 lakh!
The company has stable promoter shareholding of 60% but pledges have gone up as a % of promoter stake over the last few quarters. Going from 55% to 30%, to 76% and as of June 30, 2023 it is 75%. About 23% is held by FIIs & DIIs and the rest are retail held.
Written by Sandeep R
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