On Wednesday this small-cap stock hit 10% upper circuit after its subsidiary received an order worth Rs. 2,470 Cr. The stock closed 7% below the 52-week high and above the both 50-day and 200-day moving averages.

The stock price is being helped by the strong and rising volume, which is above the averages from the previous day and week. 

GMR Power and Urban Infra Ltd

The company belongs to a small-cap category, with a market capitalisation of Rs. 2,209 Cr. On Wednesday stock hit 10% upper circuit at Rs. 36.60 on NSE. 

According to the company filing, its step-down subsidiary GMR Smart Electricity Distribution Pvt Ltd (GSEDPL) has received an order from Dakshinanchal Vidyut Vitran Nigam Ltd to implement smart metering projects in Dhakshinancahal area of Uttar Pradesh.

GSEDPL will install, integrate, and manage 25.52 lakh smart meters. The operation time is 93 months, while the implementation tenure is anticipated to be 27 months from the date the contract was executed. About Rs. 2,470 Cr. is the contract’s worth.

The stock has delivered 106% returns in six months, therefore making an investment of 1 lakh six months ago now would be worth 2.06 lakhs.

As per the company filing, the total revenue increased to Rs. 1,190 Cr in Q1 FY24 from Rs. 1,163 Cr in Q1 FY23 and the company reported a net loss of Rs. 217 Cr in Q1 FY24 against a profit of Rs. 201 Cr in Q1 FY23.

As of June 2023, Promoters hold 59.83%, DIIs hold 2.73%, FIIs hold 2.73% and the Public hold a 16.58% stake in the company.

GMR Power and Urban Infra Limited operates in the energy, transportation, and urban infrastructure industries. The business is involved in the creation, upkeep, and management of special economic zones as well as engineering, procurement, and construction contracting. 

Written by Sheshadri N

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