G R Infraprojects stock soars over 6% on ₹904 crore metro contract win

Shares of G R Infraprojects surged by 6.12 F in early morning trading, reaching ₹1,774.95 each, following the announcement of a major contract win. On Monday, the company informed investors through an exchange filing that it had secured the position of lowest bidder for a metro construction project valued at ₹904 crore.

This project is being executed by Maharashtra Metro Rail Corporation Ltd. in Nagpur. According to an exchange filing, it involves the design and construction of a 17.62 km elevated metro viaduct, which includes railway spans of 79 meters and 100 meters in length.

Additionally, the engineering, procurement, and construction project encompasses the design and construction of a six-lane double-decker section featuring a vehicular underpass that measures 1.14 km in Reach-1A of NMRP Phase 2, according to the regulatory filing. 

The company is in the construction and upkeep of roads, bridges, highways, and various civil infrastructure projects. It holds a significant presence in northern and central India, with recent expansion into the western and southern regions.

The company has evolved its project models, notably the engineering, procurement, and construction (EPC) model and the build, operate, and transfer (BOT) model, offering it a competitive advantage.

As of 31st March 2024, the company’s order book stands at ₹16,780.61 crore. During FY24, it successfully secured various projects, including two road projects under the Hybrid Annuity Model (HAM) valued at ₹1,615.70 crore, one ropeway project worth ₹259.32 crore, one transmission project valued at ₹313.56 crore, and one tunneling project worth ₹1,541.15 crore, all catering to the hydro sector, as per the company's FY24 annual report. 

Up over 60% in 10 months

The company’s shares began their upward rally in December 2023 and have maintained this momentum to date. During this period, the shares have surged from ₹1,036 each to the current trading price of ₹1,717, representing a gain of 66 per cent.

India’s infrastructure sector is poised for continued growth, with planned investments totaling USD 1.4 trillion by 2025. 10 The government's ambitious National Infrastructure Pipeline (NIP) program outlines a massive infusion of capital into various subsectors, including energy, roads, railways, and urban development.

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