Stock to buy: GR Infraprojects shares are Axis Securities’ stock pick of the week; here’s why

Stock to buy: Axis Securities has picked GR Infraprojects shares as its stock pick of the week, expecting an upside of 10% in the stock. GR Infraprojects share price gained 2% on Monday, recouping some of the losses from previous session. GR Infraprojects shares gained as much as 2.01% to ₹1,084.95 apiece on the BSE.

GR Infraprojects is an infrastructure firm, providing comprehensive solutions, ranging from project planning and design to construction and ongoing maintenance. The company’s project portfolio is diverse, encompassing railway overbridges, elevated metro lines, transmission lines, multi-modal logistics parks, and ropeways.

Acis Securities is bullish on GR Infraprojects shares on the back of healthy order book, strong bidding pipeline & segment diversification, and dividend from InvIT supporting its profitability.

Healthy Order Book

As of 31 December 2024, GR Infraprojects’ order book position, including L1 projects, stood at ₹19,971 crore. In Q4FY25, the company received orders worth ₹5,165 crore, providing revenue visibility for the next 24–36 months.

Strong Bidding Pipeline

The bidding pipeline also remains strong at ₹1.35 lakh crore, with ₹1 lakh crore from highways, ₹20,000 Cr from transmission, and the balance from road tunnels, metro, railways, and ropeways.

“In addition to road projects, the company has successfully diversified into other segments such as railways, ropeways, optical fibre, multi-modal logistic parks (MMLPs), and power transmission to reduce its dependence on road projects,” the brokerage firm noted.

Dividend from InvIT

In April-December period of FY25, the company received ₹170 crore as dividend and interest income from Bharat Highways InvIT and expects to receive ₹60 crore on its units with InvIT in Q4FY25.

In FY26, the company expects to receive ₹200–250 crore of income, supporting its profitability moving forward.

Axis Securities expects GR Infraprojects to post revenue growth of 12% CAGR, net profit growth of 18% CAGR and EBITDA growth of 18% CAGR over FY25 – FY27.

GR Infraprojects share price is currently trading at an implied PE of 16x/12x FY25E/FY26E EPS.

Axis Securities recommends a ‘Buy’ rating on GR Infraprojects shares for a target price of ₹1,166 apiece, implying an upside of 10% from Friday’s closing price. The duration for the trade is 6-9 months.

At 1:40 PM, GR Infraprojects share price was trading 1.97% higher at ₹1,084.55 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.