Multibagger stock GMR Power & Urban Infra Ltd has potential to rally 38 per cent in a bull case, Emkay Global said it believes the company management has a clear focus on deleveraging on the back of strong operating cash flows, supported by conversion of FCCBs into equity and handover of the Hyderabad-Vijayawada road project. Incremental smart meter contracts, monetisation, and settlement of disputes provide sizable optional value, the brokerage said.
“The company’s 180MW Bajoli Holi hydro-power asset has largely stabilised, while its 7.5 million smart meter installation contract opens up a lucrative asset-light business opportunity with Bosch, for vertical integration & unleashing its execution capabilities,” the brokerage said while suggesting a base case target of Rs 180 and bull case target of Rs 205.
GMR Power’s thermal assets are operating at over 80 per cent plant load factors (PLFs) on the back of domestic coal tie-ups, 90 per cent supply through PPAs at reasonable…
