GPT Infraprojects Limited, the flagship company of the GPT Group, is making waves in the civil and infrastructure sectors. With a focus on projects related to railways, roads, power, and industrial development, the company has emerged as a key player in the infrastructure landscape. Notably, GPT Infraprojects also manufactures railway concrete sleepers, showcasing its diverse capabilities.
In recent years, the company has witnessed a remarkable journey, marked by substantial growth and a surge in its stock value. The stock has delivered more than 700% returns in the last three years, making it an enticing investment opportunity. In this article, we will delve into the factors contributing to this success and explore why GPT Infraprojects is capturing the attention of investors.
Weekly Chart of the Company
The weekly chart of GPT Infraprojects’ share price paints a remarkable picture of upward momentum.
In 2020, the share price hovered around 14 rupees per share, and as of 2023, it has soared past the 120 rupee mark. This remarkable surge can be attributed to the company’s robust fundamentals and a recent major order win, solidifying its position in the market.
Impressive Q2 FY 2023-24 Results
GPT Infraprojects Limited reported stellar results in the second quarter of FY24, underlining its financial prowess. Net sales witnessed an impressive 53% growth, reaching Rs 233.63 crore compared to Rs 152.70 crore in the same quarter last year. The operating profit experienced a substantial increase of 57.48%, showcasing the company’s operational efficiency. The net profit for the quarter stood at Rs 14.00 crore, a significant 206.3% increase from the previous year. With a Return on Capital Employed (ROCE) of 14.2% and a Return on Equity (ROE) of 11.1%, coupled with a market capitalization of Rs 749 crore, GPT Infraprojects is proving to be a solid investment.
The company’s revenue stream is well-diversified, with the infrastructure segment contributing Rs 210 crore, accounting for 89% of the total revenue, and the sleeper segment adding Rs 24 crore.
Order Win: A Landmark Achievement
A key driver of GPT Infraprojects’ success is its recent monumental order win. The company secured a significant order for the construction of the Prayagraj Southern Bypass in Uttar Pradesh, covering a design length of 7.660 km. This project, part of Bharatmala under NH-19 on EPC mode, highlights the company’s strong project execution capabilities. The outstanding order book for the company now stands at an impressive Rs 2,838 crore, with a total order inflow of Rs 1,019 crore for fiscal 2024.
A Renowned Clientele
GPT Infraprojects boasts an impressive clientele, including some of the largest and most prestigious railway customers in India, Asia, and Africa. Indian Railways, IRCON International Ltd, TransNamib Holdings Ltd, Sri Lanka Railways, Bangladesh Railway, Myanmar Railways, National Highways and Infrastructure Development Corporation Ltd, among others, are part of the company’s portfolio. This diverse and esteemed client base speaks volumes about the trust and confidence reposed in GPT Infraprojects.
GPT Infraprojects’ impressive trajectory of growth, coupled with the driving forces behind its success, offers a compelling investment prospect. Nevertheless, it is strongly recommended that investors undertake thorough research and align their investment decisions with their unique financial objectives to make well-informed and prudent choices.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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