GR Infraprojects shares soar 6% on bagging 'LoA' for Nagpur Metro Project

Shares of GR Infraprojects surged up to 5.81 per cent at Rs 1,730 per share on the BSE in Thursday’s early morning trade. The stock price jumped after the company won an order worth Rs 903 crore on Wednesday. 

At 9:19 AM, the stock price of the company was trading 5.02 per cent higher at Rs 1717 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.22 per cent to 81,642.32 level. 

“We are pleased to inform you that our Company has received a Letter of Acceptance (LoA) dated 9th October 2024 from Maharashtra Metro Rail Corporation,” the company said in an exchange filing. 

The LoA pertains to design and construction of elevated Metro viaduct of length 17.62 km including Railway spans of length 79 metre and 100 metre and a 6-lane double decker portion with Vehicular Underpass (VUP) for a total length of 1.14 km in Reach-1A of Nagpur Metro Rail Project Phase-2.

The  total value of the order win is Rs 903.53 crore and is scheduled to be completed in two years and six months. The company had declared on September 23, 2024 that it emerged as the lowest bidder for Nagpur Metro Rail Project. 

Founded in 1995, GR Infraprojects Ltd is an engineering, procurement, and construction (EPC) company engaged in road infrastructure. Historically, the firm has successfully completed more than 100 road projects across 16 Indian states. Its core business, accounting for about 90 per cent of revenue, focuses on EPC, Build-Operate-Transfer (BOT), and Hybrid Annuity Model (HAM) projects, predominantly within the road sector. Beyond road construction, GR Infraprojects is also engaged in railway, metro, airport runway, and Optical Fibre Cable (OFC) projects.

As part of its diversification efforts, the company has expanded into the power transmission sector. GR Infraprojects manages a portfolio of 10 operational assets, including one NHAI annuity project, one state-level HAM project, and eight additional HAM projects with the National Highways Authority of India (NHAI).

Share price history

The firm’s share price has outperformed the market as it surged 51.3 per cent year to date, while gaining 42.1 per cent in the last one year. In comparison BSE Sensex has risen 12.9 per cent year to date and 23.5 per cent in a year. 

The company has a total market capitalization of Rs 16,574.67 crore. Its shares are trading at price to earnings valuation of 8.23  times with an earning per share of Rs 198.72.