GMR Power and Urban Infra Ltd: Future Share Price Targets from 2023 to 2030
Introduction:
GMR Power and Urban Infra Ltd, a major part of the GMR Group, is a prominent player in the power generation and distribution sector. In this article, we will discuss the future share price targets for GMR Power from 2023 to 2030.
GMR Power Share Price Target 2023:
As of now, the promoter holding of GMR Power stands at 59%. According to market analysts, the first target for GMR Power’s share price in 2023 could reach ₹50, while the second target could go up to ₹60.
GMR Power Share Price Target 2024:
GMR Power currently carries a debt of Rs 3,664.95 crore. However, if the company manages to reduce its debt in the coming years, experts predict that the first target for GMR Power’s share price in 2024 could reach ₹75, with the second target potentially reaching ₹85.
GMR Power Share Price Target 2025:
Over the past six months, GMR Power has delivered impressive returns of 53%. Building on this momentum, market analysts anticipate that the first target for GMR Power’s share price in 2025 could reach ₹110, while the second target might go up to ₹130.
GMR Power Share Price Target 2030:
Although the company’s net profit for the last three years is recorded at 0%, if GMR Power manages to grow in the future, experts project that the first target for the company’s share price in 2030 could reach ₹300, with the second target potentially hitting ₹350.
Strengths of GMR Power Share:
1. GMR Power is a significant part of the GMR Group, a large industrial conglomerate.
2. The promoter holding of the company is currently at 59.83%, indicating a strong commitment to the company’s success.
3. The company recently secured a substantial order worth Rs 5,123 crore from the Uttar Pradesh government, ensuring steady revenue for the next 93 weeks.
Weaknesses of GMR Power Share:
1. GMR Power currently carries a debt of Rs 3,664.95 crore, which poses a financial challenge.
2. The company has experienced negative compound annual growth rate (CAGR) returns of -13% in the last year, -14% in the last three years, and -9% in the last five years.
3. The profit growth of GMR Power has declined significantly by -997.04% in the last three years, raising concerns about its financial performance.
4. The company’s return on equity (ROE) for the past three years is recorded at 6.60%.
Conclusion:
Considering GMR Power’s debt of Rs 3,664.95 crore, which exceeds its market capitalization of Rs 2,058 crore, there is a higher risk associated with investing in this company. However, with the current substantial orders in hand, there is potential for growth. It is advisable to consult a financial advisor before making any investment decisions.
Disclaimer:
This news article is for informational purposes only and does not provide investment advice. Investing in the stock market involves risks, and it is recommended to seek expert opinion before making any investment decisions.
Read More: Government Orders Rs 5,123 Crore for Rs 28 Shares.
