G R Infraprojects Ltd. share price target

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.

Quarterly Update Q4FY23

Recommendation: We roll over our estimates to FY25 and maintain our BUY recommendation on the stock.

Quarterly Update Q3FY23

GR Infraprojects (GRIL) has reported steady order execution but higher profits in Q3FY23. On a standalone basis, revenue was up 4.4% YoY to Rs19bn, EBITDA was up 8.6% YoY to Rs2.8bn, and EBITDA margin came in at 14.6%. Reported PAT in Q3FY23 was up 31.9% at Rs1.7bn. Orderbook stood at Rs141bn, and the company has maintained its FY23 order inflow guidance of Rs150bn.

Recommendation: We maintain our BUY recommendation on the stock

GR Infraprojects (GRIL) has reported steady earnings in Q2FY23 aided by higher execution and receipt of early completion bonus.

We maintain a BUY on GRIL and value the EPC business at 13x FY24E EPS and HAM portfolio at 1x Book Value to arrive at a target price of Rs1,600/share, implying an upside of 37% from the CMP.