Shares of this small-cap stock jumped 13 percent today after the step-down subsidiary received smart meter installation orders. In the last one-month period, the stock has surged over 30 percent from Rs 17.35 during mid of June 2023 to the current levels.
With a market capitalization of Rs 1,400 crores, the stocks of GMR Power and Urban Infra Limited are currently trading at Rs 22.75. The scrip witnessed an intra-day high price of Rs 24.15 wherein the stock was locked in the 20 percent upper circuit for a short span of time during the initial trading period.
Such movements in the stock prices were observed after the company’s filing with the Bombay Stock Exchange (BSE) dated 13th July 2023.
The filing informed GMR Smart Electricity Distribution Private Limited (GSEDPL), a step-down subsidiary of GMR Power and Urban Infra Limited, has received a Letter of Intent (LoI) to install, integrate and maintain 75.69 lakh smart meters in various areas of Uttar Pradesh. The project will be spanned over a period of ten years.
A glance at the financials of the company leads to observations about positive changes in the basic indicators such as the operating revenues as well as net profits. The operating revenues went up from Rs 4,101 crores during FY21-22 to Rs 5,524 crores in FY22-23.
The company’s net profits, on the other hand, turned positive with the most recent shift being from net losses of Rs 897 crores during FY21-22 to net profits of Rs 397 crores in FY22-23.
Founded in 2019, GMR Power and Urban Infra Limited is a company based in India that is engaged in a wide range of sectors comprising Urban Infrastructure, Energy, Transportation, etc.
Written by Amit Madnani
