GVK Power shere Price Target 2023, 2024, 2025, 2026, 2030

By Dotsmovie Jan10,2024
GVK Power shere Price Target 2023, 2024, 2025, 2026, 2030
GVK Power shere Price Target 2023, 2024, 2025, 2026, 2030

GVK Power shere Price Target: GVK Power & Infrastructure Ltd. is an Indian conglomerate with interests across various sectors like energy, resources, airports, transportation, hospitality and life sciences.

In this comprehensive guide, we will analyze GVK Power’s business model, financial health, future growth prospects and expected share price targets for 2023 to 2030.

GVK Power shere Price Target 2023, 2024, 2025, 2026, 2030
GVK Power shere Price Target 2023, 2024, 2025, 2026, 2030

This will help investors make an informed decision on whether GVK Power makes for a good investment today given its high debt but high growth potential across infrastructure sectors. Read on to find out more.

GVK Power Company Background

GVK Power & Infrastructure Limited was founded in 1991 by Grandhi Mallikarjuna Rao. It is headquartered in Hyderabad, Telangana.

Some key facts about the company:

  • One of India’s leading infrastructure developers in the transportation, energy and resources sectors
  • Focused on creating infrastructure assets of national importance
  • Established India’s first independent power plant at Jegurupadu, Andhra Pradesh
  • Has invested over USD 4.3 billion in infrastructure projects across India

GVK Power Business Structure

GVK has organized its business operations under the following strategic business units:

1. Energy

This is GVK Power’s core business division focusing on thermal and hydro power generation assets across India. Key energy projects:

  • Thermal: Has 1080 MW coal-fired Jegurupadu plant (Phase 1 and 2) in Andhra Pradesh
  • Hydro: Implementation of 300 MW Alaknanda Hydro Power project in Uttarakhand
  • Plans to have a well-diversified energy generation portfolio:
    • 40% from renewable sources by 2030 (currently 30%)
    • 175 GW renewable capacity addition over the next few years

2. Airports

GVK develops and operates airports in India under a public-private partnership model:

  • Owns a 50.5% stake in Mumbai International Airport Limited (MIAL), which operates Chhatrapati Shivaji International Airport
  • Has 43% stake and management control of Bangalore International Airport Limited (BIAL)
  • Developing Navi Mumbai International Airport through subsidiary NMIAL

Plans to build more airports to tap rising aviation sector growth in India

3. Transportation

GVK develops road and rail transportation projects on build–operate–transfer model:

  • Operates 4 road projects covering 542.4 km
  • A key project is Jaipur-Kishangarh Expressway in Rajasthan

4. Resources

Mainly focused on coal extraction and trading businesses in Indonesia under GVK Coal Resources Singapore:

  • PT Duta Sarana Internusa
  • PT Silau Kencana

GVK Power Financial Analysis

Let’s examine the financial performance and position of GVK Power & Infrastructure:

FY2022 Financial Highlights

| Metric| Value|
|Revenue| ₹2,600 crore|
|EBITDA| ₹1,880 crore|
|PAT| ₹180 crore|
|Total Debt| ₹5,864 crore|

Key Ratios

  • Operating Profit Margin: 72.2%
  • Return on Capital Employed: 17%
  • Debt/Equity Ratio: 1.9

GVK has been able to grow its operational performance over the last 3 years with sales crossing ₹2,600 crore. However, high debt levels remain a concern.

Let’s analyze what GVK Power share price targets we can expect in the coming years based on its growth prospects.

GVK Power Share Price Target 2023

  • GVK Power’s stock price has risen 50% over the last 6 months
  • However, the stock remains well below book value indicating potential for further upside
  • Given rising sales and an excellent 72% OPM, the stock could see some uptick in 2023
  • But high debt can restrict major spikes in bottom line and share price
  • GVK Power Share Price Target for 2023 = ₹4.50 to ₹6

GVK Power Share Price Target 2024

  • Foray into the transportation sector taps into India’s need for better roads and connectivity to boost the economy
  • Operates Jaipur-Kishangarh Expressway Road project in Rajasthan over 542.4 km
  • Infra push by government expected to benefit players like GVK Power
  • GVK Power Share Price Target for 2024 = ₹6.20 to ₹7

GVK Power Share Price Target 2025

  • GVK has 25+ years track record in the power sector with 1080 MW thermal and 300 MW hydroelectric projects
  • Excellent operating metrics make it well-positioned to benefit from the increasing energy needs of a growing economy
  • Potential 5% upside YoY likely but high debt restricts major share price rise
  • GVK Power Share Price Target for 2025 = ₹7.20 to ₹8

GVK Power Share Price Target 2026

  • GVK foray into airport infrastructure through Chhatrapati Shivaji Intl Airport and Bangalore Intl Airport
  • Bangalore Airport master plan to handle 55 million passengers annually by 2030
  • Ability to tap high growth aviation sector as a key catalyst for future growth
  • GVK Power Share Price Target for 2026 = ₹8.50 to ₹9

GVK Power Share Price Target 2027

  • The energy sector crucial for India’s economic growth and infra development
  • GVK’s efficient power assets are key to contributing to national energy needs
  • Operating leverage and financial performance expected to improve
  • GVK Power Share Price Target for 2027 = ₹10 to ₹13

GVK Power Share Price Target 2030

  • GVK plans additional airport terminals before 2030 to tap passenger growth
  • Renewable energy portfolio enhancement to 40% by 2030 to align with clean energy push
  • Significant growth away if debt is brought under control
  • GVK Power Share Price Target for 2030 = ₹17 to ₹18.50

GVK Power Share Price Target Table

| Year | Targets (₹) |
|2023 | 1st Target – ₹4.50
2nd Target – ₹6|
2024|1st Target – ₹6.20
2nd Target – ₹7 |
2025 |1st Target – ₹7.20
2nd Target – ₹8 |
2026|1st Target – ₹8.50
2nd Target – ₹9|
2027|1st Target – ₹10
2nd Target – ₹13|
|2030|1st Target – ₹17
2nd Target – ₹18.50|

GVK Power Shareholding Pattern

  • Promoters: 54.25%
  • Retail and Others: 44.97%
  • Other Domestic Institutions: 0.48%
  • Foreign Institutions: 0.30%

Promoters hold a majority 54% stake giving them control and increasing alignment with minority investors.

Future Prospects of GVK Power

Let’s look at what the future holds for GVK Power:

1. Airport Infrastructure Growth

  • Rising air travel and passenger growth make the airport sector quite lucrative
  • GVK plans more airports to tap into this high growth industry
  • Currently operates Mumbai and Bangalore airports handling millions of passengers

2. Aligning with Renewable Energy Goals

  • Target to source 40% power from renewables by 2030
  • Significant renewable energy capacity addition planned

3. Transportation Network Growth

  • Roads, highways, expressways crucial backbone for economic progress
  • GVK well positioned in this sector with Jaipur-Kishangarh Expressway operational

So in summary, GVK has presence across high growth infra sectors that bode well for its future prospects.

Risks of Investing in GVK Power

However, GVK Power also comes with few risks for investors:

1. Funding Risks: GVK needs significant funding for expansion plans to realize its full potential growth. Inability to raise capital can negatively impact future prospects.

2. High Debt: Massive debt levels currently exceeding ₹5,800 crore needs to be brought down. Else, profits get constantly get routed towards servicing debt obligations.

So while business prospects look promising, investors need to be wary of these risks too.

Is GVK Power a Good Buy?

So should you buy GVK Power shares? Here are some key considerations:


  • Presence across high growth infra sectors
  • Strong operating metrics
  • Promising long-term growth outlook till 2030
  • Upside potential for stock


  • Significant debt obligations
  • Funding risks for future growth plans

GVK Power offers a high-risk, high-reward investment proposition. It is a good buy only for investors willing to stomach volatility and with a long-term investment horizon.

Debt reduction remains crucial for maximizing shareholder returns going forward.


GVK Power operates across transportation, energy and airport sectors with promising long-term prospects. Though the current share price looks attractive, significant paring down of debt is essential before the stock can be re-rated substantially by the markets.

Conservative investors should wait for definite debt-reduction signs before investing. Aggressive investors willing to take risks can consider buying at current levels from 2-3 year perspective.

We recommend monitoring GVK’s funding position and debt levels regularly to timely assess the upside potential in the stock. Do your research before investing.

Frequently Asked Questions

Does GVK Power pay dividends?

No, GVK Power currently does not give any dividends given its high debt commitment obligations. Once debt reduces and profitability improves, dividends payouts may be considered.

What is the 52 week high/low of GVK stock?

52-week high/low stock price is ₹5.33 / ₹1.98. Currently trading close to 52-week highs.

Who are the key competitors of GVK Power?

Key competitors are companies in similar infrastructure sectors like Adani Enterprises, GMR Infrastructure and Larsen & Toubro.

What is the promoter shareholding in GVK Power?

Promoters have majority 54.25% shareholding as per latest shareholding pattern. This ensures their interests are strongly aligned with minority investors.

Does GVK Power qualify as a good long-term stock?

Yes, GVK Power offers good long term prospects owing to its presence in high growth infrastructure sectors in India. However, ability to tap growth depends on adequate funding and significant debt reduction which remains a key monitorable.

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