Buy GR Infraprojects; target of Rs 1200: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Execution has picked up with 45% YoY revenue growth in H1, and the company has revised its revenue growth guidance to 25% for the fiscal.
  • The order book remains healthy at INR 245bn (2.7x TTM sales), with a pipeline of big-ticket projects, particularly from the roads segment.
  • Asset monetisation is on the cards, with the company aiming to monetise a few operational HAM projects by the end of this fiscal.
  • Margin expansion is expected due to higher capacity utilisation and easing raw material costs.

Thesis Validation Checklist

To validate the thesis, investors should watch for: execution growth, order inflows, margin expansion, and asset monetisation over the next 12 months. Key signals include revenue growth, order book size, and profitability metrics. Risks to the thesis include delays in order inflows, lower bidding activity, and execution delays.