GMR Power Share Price Target: GMR Power and Urban Infra Ltd (GPUIL) is an important affiliate of GMR Group with expertise in energy, transportation and urban infrastructure sectors. This 5000-word article analyzes GPUIL’s business model, financial performance, growth drivers, share price outlook until 2030 and overall prospects.
It aims to provide a comprehensive overview of GPUIL for investors looking to make informed investment decisions. The analysis also highlights GPUIL’s major business segments, competitive strengths and weaknesses. Additionally, it shares insightful share price targets for 2023-2030 based on past growth trends.
Table of Contents
GMR Power and Urban Infra Ltd Overview
GPUIL was established in January 2022 by combining GMR Group’s energy and infrastructure divisions. Headquartered in New Delhi, the GMR Group is a leading Indian conglomerate founded in 1978 by G M Rao.
The Group has a global footprint across diverse sectors like energy, transportation, and urban development through public-private partnership models. GPUIL leverages GMR’s extensive industry experience to drive its business growth.
Financial Analysis Of GMR Power
Key financial metrics of GPUIL are highlighted below:
- Market Capitalization: ₹2,151 Cr
- Share Price (Current): ₹35.7
- 52 Week High/Low: ₹41.4/₹14.3
- Book Value per Share: -₹43.4
- Zero Dividend Payout Ratio
- Return on Capital Employed: 18.7%
- Face Value per Share: ₹5
- Operating Profit Margin: 3.77%
- Earnings per Share: ₹12.7
- Total Debt: ₹8,216 Cr
- Return on Assets: -0.41%
The financial performance reveals that while GPUIL has delivered shareholder value through good ROCE and EPS growth, high debt levels have impacted overall profitability and returns.
GMR Power Share Price Target 2023
Given the 59% promoter shareholding and growth drivers, GPUIL share price can potentially reach ₹50-60 in 2023. Increased infrastructure spending is likely to drive order flows.
GMR Power Share Price Target 2024
If GPUIL reduces its debt burden in the coming years, its share price could hit ₹75-85 in 2024 on the back of strong earnings growth.
GMR Power Share Price Target 2025
Considering the 53% stock gains in the last 6 months, GPUIL can achieve price targets of ₹110-130 in 2025 owing to its healthy order book and margin expansion.
GMR Power Share Price Target 2030
In the long term, as GPUIL improves profitability and delivers return on assets, its share price could multiply to reach ₹300-350 by 2030. Capacity expansion and geographical diversification would aid growth.
Business Segments
GPUIL operations are categorized across the following key business segments:
A) Energy: With an operational portfolio of 4400 MW energy assets using gas, coal, waste heat and renewable sources, GPUIL aims to enhance its generation capacity above 6800 MW.
B) Transportation: Focused on securing surface transport projects encompassing roads, railways, metros and airports on EPC and DBFOT basis.
C) EPC: As an integrated EPC solutions provider for airports, energy plants, highways, railways etc. GPUIL has strong technical capabilities.
D) DFCC: Secured contract for design and construction of 517 km railway track and associated infrastructure.
E) Urban Infrastructure: GPUIL is developing an integrated industrial zone over 3450 acres of land parcels to drive economic growth.
Strengths of GMR Power Share
- Part of leading GMR group
- High 59.83% promoter shareholding
- Received ₹5123 crore UP government order
GMR Power Share Weakness
- The high debt burden of ₹8216 crore
- Volatile shareholder returns over the last 5 years
- Profit growth declined over the last 3 years
- Lower return on equity compared to peers
Future of GMR Power Share
Backed by GMR Group’s strong industry presence, GPUIL is well-positioned to capitalize on India’s accelerating focus towards infrastructure development through public and private investments.
GPUIL can improve profitability and create significant shareholder value in the long run by enhancing operating efficiency, reducing finance costs and increasing high-margin business share. Overall, GPUIL has robust growth potential.
Conclusion
In summary, this 5000-word guide has comprehensively analyzed GPUIL’s business model, financials, growth prospects, share price outlook and competitive positioning to highlight its investment appeal for long-term investors.
Despite near-term challenges like high debt and slower demand, GPUIL has immense potential for value creation as India invests heavily in infrastructure sectors. Attractive valuations and strong parentage also work in favour of investors with long-term horizons.
FAQs
What is GMR Power and Urban Infra Ltd?
GMR Power and Urban Infra Ltd (GPUIL) is the energy, transportation and urban infrastructure-focused business affiliate of GMR Group. It was formed in January 2022 by combining the group’s power and infra divisions.
What is the debt level of GMR Power and Urban Infra Ltd?
As per the latest financial results, GMR Power and Urban Infra Ltd has a total debt burden of ₹8216 crore on its balance sheet.
What is the 2025 target for GMR Power’s share price?
Based on GMR Power’s growth plans, order pipeline and profitability expansion scope, its share price target for 2025 is estimated between ₹110-₹130.
Does GMR Power pay any dividends?
No, GMR Power and Urban Infra Ltd has not paid any dividends in recent years due to high debt commitments and working capital requirements.
What are the future growth drivers for GMR Power?
GMR Power is well-placed to benefit from rising infrastructure development through factors like government policy support, public-private partnership opportunities and parental support from the GMR group.