Gayatri Projects share up on bagging new orders
The company's stock closed at Rs 214.55, up 0.85% from its previous closing of Rs 212.7 on the BSE
Shares of Gayatri Projects, ending the losing week-long streak, gained 1% after the company announced that it won two new orders of Rs 923 crore from the National Highways Authority of India (NHAI).
The orders include a Rs 529 crore road project on NH-42 (Cuttack- Angul section) in Odisha and Rs 394-crore project on NH-23 (Rajamunda- Barkote section) in the state on EPC mode.
The company's stock closed at Rs 214.55, up 0.85% from its previous closing of Rs 212.7 on the BSE.
The scrip opened at Rs 207.6 and touched a high and low of Rs 216.8 and Rs 207.6, respectively. The stock traded above its 50 DMA.
Gayatri Projects is the flagship company of Gayatri Group. It has interests in infrastructure, power, hospitality, real estate and industry.
The company has evolved from an asset-heavy business model to an asset-light EPC model in road construction.
As of Q2FY18, the company has zero exposure to hybrid annuity model and residual exposure to build operate and transfer projects, an India Infoline report said.
"We, therefore, believe that the company will be able to sustain its operating margin at 15% over FY18-19E. GPL’s debt has reduced by around Rs 20 billion after the demerger of its BOT business post NCLT’s approval. The stock currently trades at 10x FY19E EV/EBITDA," said India Infoline.
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