Rs 22 to Rs 46 in a month: This multibagger stock closed at 52-week high in previous session

Shares of multibagger GMR Power and Urban Infra Ltd have risen over 100% in the last one month. The stock, which closed at Rs 22.78 on August 18, 2020 rose to a 52-week high of Rs 46.29 in the previous session (September 18, 2023), clocking 103% returns during the period. In comparison, Sensex has risen 3.65% in a month.  

GMR Power shares closed at a 52-week high of Rs 46.29 on Monday. The stock ended 9.98% higher against the previous close of Rs 42.09 on BSE. The power sector stock has gained 147% in three months and risen 163% in the last six months.   

 The rally in GMR Power stock can be attributed to the firm receiving a Letter of Award (LOA) for a smart metering project worth Rs 2,470 crore in Uttar Pradesh on September 12, 2023. The  stock zoomed 10% in the next session.  

On September 4 too, GMR Power & Urban Infra shares were locked in an upper circuit of 20 percent after the company's unit won an order worth over Rs 5,000 crore in Uttar Pradesh.  

The power firm made its stock market debut on March 23, 2022.  

GMR Power and Urban Infra began trading on bourses after the firm was demerged from GMR Infra. The stock hit 5% lower circuit after listing at Rs 46.50 on the BSE and Rs 48 per share on the NSE. 

Meanwhile, total 44.20 lakh shares of the firm changed hands amounting to a turnover of Rs 20.25 crore in the previous session. Market cap of the firm rose to Rs 2,794.04 crore. GMR Power shares have a beta of 1.5, indicating very high volatility in a year. 

The stock hit a 52-week low of Rs 14.32 on March 28, 2023.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 79.6, signaling it's trading in the overbought zone. GMR Power shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.      

Shareholding pattern  

21 promoters held 59.83 per cent stake in the firm and 3.24 lakh public shareholders owned 40.17 per cent or 24.24 crore shares for the quarter ended June 2023. Of these, 3,14,899 resident individuals held 4.82 crore shares or 8% stake with capital up to Rs 2 lakh. Only 160 resident individuals with 3.41% stake or 2.05 shares held capital above Rs 2 lakh for the quarter ended June 2023.     

Earnings  

In the June quarter of this fiscal, GMR Power posted a loss of Rs 205 crore against a Rs 212.7 crore profit during the quarter ended June 2022. Revenue rose to Rs 1190.4 crore in Q1 against Rs 1163.4 crore during the quarter ended June 2022.        

However, EBITDA margin in the June quarter rose to 14.36% as against 13.13% YoY.  EBIDTA during Q1 came at Rs 161.5 crore against Rs 140.3 crore against the corresponding quarter in the previous year.    

About the Company      

GMR Power & Urban Infra is mainly engaged in generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including engineering, procurement and construction (EPC) contracting activities.  

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.  

 

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