The construction company of Jalan GR Infrapran made a strong debut on D-Street, opened to be traded on July 19 for more than 100 percent premium.
After more than doubling the wealth of investors when opened, shares rose as high as Rs 1838 during the day; 119.6 percent reversed at the price of the problem RS 837. At the time of writing this copy, the GR Infraprotes quoted at Rs 1,740, up 107 percent in BSE.
Listing is above analyst expectations, as well as the gray market premium, which sets stock to open around 60 percent of the premium regarding problem prices.
Given Stellar’s debut, experts suggest short-term investors to order profits. However, long-term investors can hold stock. New investors, or existing investors want to add to their position, must wait for more time, they said.
“We suggest investors who are given to find the benefits of booking and if investors want to add gr. In the day list, they can wait and watch for a better price list,” Prashanth Tapse, VP Research at Monehta Equities to MoneyControl.
Gaurav Garg, a research head at Capitalvia Global Research also suggested that investors must order their listings or wait for prices to fall to accumulate stock at a lower level.
GR Infrastructure is an EPC company integrated with 25 years of experience in designing and building various road / highway projects in 15 states in India. Recently, the company diversifies into the railroad sector project.
Its main business operations include civil construction activities under EPC services; development of roads, highways under the Build-Operate Transfer (BOT) & Hybrid-Anuity-mode ham mode; Bitumen processing, paint making thermoplastic road marking, electric pole & nameplate and fabrication & galvanization of metal collision barriers.
In March 2021, the company has a book order RS 19,026 Crore, which is around 2.7x from the revenue of construction services.
On the Finance Front, the GR Infra reported a series of strong numbers above FY18-21. The company reported 33.5 percent of CAGRs rose in the consolidated topline and 32.2 percent of CAGR in profit during FY18-FY21 behind a higher business of civil construction services.
Asta Jain, Senior Research Analyst at Hem Securities recommended a partial earnings order on the day of listings.
“The company has posted strong financial performance with a healthy balance sheet status. Also, the company has a healthy order book that provides strong revenue visibility going forward. When companies try to maintain strong financial positions and low debt levels to strong . The balance sheet, allows it to pursue future opportunities for growth and seems to be a good bet for the long term, “he said.
Rajnath Yadav, research analyst at Choice Broking, also recommends short-term investors to order profits. However, long-term investors can continue to invest considering the company’s historical performance and the government’s focus in the road sector in general
The GR infrastructure collected Rs 963 Crore through public problems last week, which was a complete offer for sale. So the whole results will go to the selling shareholders.
The company has three manufacturing facilities for the main raw materials and also fabrication & galvanization. In addition, the company has more than 7,000 construction equipment and vehicles on the base of the equipment. All of this allows it to less dependent on third-party equipment providers and also efficiently manage the project implementation schedule.
“Given the level of commitment of the capital and expenditure needed to add and maintain road networks for the next few years, the GR infra is well placed to knock on this opportunity. We believe the infra road is an important pillar in the economic recovery of India and one will do so expect government budget commitments To strengthen road infrastructure accompanied by attractive opportunities for companies such as Dilip Buildcon, Ashoka Buildcon, Grad Infraprotes and Sadbhav infrastructure, “Prashanth Tapse said.