G R Infraprojects Ltd. share price target

We retain a BUY rating on the stock with a target price of Rs 1,620/share, implying an upside of 15% from the CMP.

We maintain a BUY on GRIL and value the EPC business at 15x FY24E EPS and HAM portfolio at 1x Book Value to arrive at a target price of Rs 1,765/share, implying an upside of 26% from the CMP.

We initiate coverage with a BUY rating with a target price of Rs 1,775/share

G R Infraprojects Ltd (GRIL) is an integrated Road EPC company that has executed projects across 15 States in India and has recently diversified into projects in the railway sector. GRIL has grown over years in terms of scale of its projects and has track record of timely project completions. GRIL has one operational road

Offer for sale from existing investor and promoter GR Infraprojects, a road sector contractor is coming out with an IPO to raise Rs9.6bn at an upper band of IPO pricing. IPO is largely an offer of sale by existing investors and promoter stake will be 86.5% post IPO. Order book at Rs190bn is scattered across multiple states and GR has experience of executing projects in 15 states in India. If compared with peers, GR revenue growth has been better than its peers and so is the EBITDA margin trajectory. GR's balance sheet has leverage but we understand it's not stretched at 0.4x (DER). Other parameter of balance sheet like debtors days has been...

G R Infraprojects Limited IPO Note Issue Open: July 07 July 09, 2021 Price Band: Rs. 828 837 ( Discount of Rs 42 for eligible Employee) Issue Size: 11,508,704 eq shares (Entirely Offer for Sale) *Issue Size: Rs.963.28 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail Upto 35% eq sh Employee Upto 225,000 eq sh

We recommend SUBSCRIBE rating on G R Infraprojects Limited (GRIL) IPO issue given a) strong pedigree management with excellent execution capabilities, b) lean balance sheet (standalone Net D/E: 0.3x), robust earnings growth (45% CAGR Over FY16-21) and c) well placed to capitalize huge opportunities in infra space (NIP of ~Rs111trn). GRIL has gradually emerged as an integrated road EPC player having successfully executed more than 100 road projects (since 2006) across 15 states with one of the fastest growth...

IPO NOTE