Top Conviction Ideas : Buy GR Infraprojects Ltd for Target Rs. 1,540 - Axis Securities Ltd
* Strong & Well-diversified Order Book Ensuring Revenue Visibility: The company's order book position, including L1 projects, stands at Rs 23,706 Cr, comprising roads, railways, transmission, telecom/optical fibre and tunnel works, providing revenue visibility for the next 24-36 months. For FY26, it anticipates an order inflow of Rs 22,000 Cr, out of which Rs 14,000-15,000 Cr will be from highways, railways, and metros, Rs 4,000-4,500 Cr from power transmission and ropeway, Rs 2,000-2,500 Cr from tunnel and hydro, and Rs 500-1,000 Cr from telecom and other projects.
* Robust Tender Pipeline Supported by Balanced Segment Exposure: The bidding pipeline for FY26 remains strong at Rs 2 Lc Cr ( out of Rs 3.4 Lc Cr) in NHAI projects, Rs 40,000 Cr from hydro, Rs 54,000 Cr from power transmission, and Rs 96,000 Cr from railways and metro projects. In addition to road projects, the company has successfully diversified into other segments such as railways, ropeways, optical fibre, multi-modal logistic parks (MMLPs), and power transmission, to reduce its dependence on road projects.
* Revenue growth to pick up: In Q1FY26, the company’s revenue was lower due to projects being in the initial stage of execution. However, most of the projects have received AD, making the executable order book of Rs 15,000 Cr, which is expected to be completed in the next 2 years. This will support a revenue growth of 13% CAGR over FY25-27E.
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