Synopsis: G R Infraprojects Ltd gained attention after Axis Direct initiated a ‘Buy’ rating with a target of ₹1,540, implying 57% upside. Backed by a strong diversified order book and a healthy bidding pipeline, the company projects steady growth.
The shares of the Small-cap, specializing in the design, development, and maintenance of highways, bridges, and tunnels, are in focus after one of the leading firm Axis Direct, has initiated a Buy Target with an upside potential of 57 percent.
With a market capitalization of Rs. 9,289.01 Crores on the Day’s Trade, the shares of G R Infraprojects Ltd declined by 1.9 percent, reaching a high of Rs. 960.00 compared to its previous close of Rs. 978.75.
What Happened
G R Infraprojects Ltd, engaged in the design, development, and maintenance of highways, bridges, and tunnels, is in focus after a leading Brokerage firm, Axis Direct, initiated its ‘Buy’ rating for a target of Rs. 1,540 on it with an upto 57 percent Upside Potential from yesterday’s close price.
Reason for the Buy Target
Strong & Well-Diversified Order Book Ensuring Revenue Visibility: The company has a robust order book of Rs 24,965 Cr (including L1 projects), spanning Roads, Railways, Transmission, Telecom/Optical Fibre, and Tunnels. This diversified mix provides strong revenue visibility for the next 24–36 months. Additionally, a revival in the Oil & Gas segment is expected to contribute around Rs 1,000 Cr in FY27, supporting an estimated revenue CAGR of 17% over FY25–FY27E.
Order Inflow Momentum Expected in Q4FY26: Order inflow for 9MFY26 stood at Rs 4,800 Cr, with awarding activity expected to accelerate in the coming quarters. Management has guided for total inflows of Rs 10,000 Cr in FY26 and Rs 20,000 Cr in FY27. Revised qualification norms and larger project sizes under updated MLA and Ministry guidelines are expected to support this target, backed by the company’s strong execution capabilities.
Robust Tender Pipeline Across Key Segments: The bidding pipeline remains healthy, with over Rs 1 Lc Cr in Highways and Rs 2 Lc Cr in Railways projects. The company has already bid for Rs 16,000 Cr in Highways and Rs 4,000 Cr in Tunnel and Hydro projects, and plans to bid for Rs 20,000 Cr worth of opportunities in the Oil & Gas sector, ensuring balanced segment exposure and sustained growth visibility.
Company Outlook & Guidance: The company has revised its revenue guidance, targeting around Rs 3,000 Cr in Q4FY26 and expecting 10%–15% growth in FY27. EBITDA margin guidance has been narrowed to 11%–12%, compared to the earlier range of 11%–13%.
Current Valuation: The stock is currently valued at 10.5x FY27E EPS. HAM, BOT, and transmission assets are valued at 1x book value (unchanged from the earlier valuation). The revised target price stands at Rs 1,540 per share, up from the earlier target of Rs 1,420 per share.
Financials
The company’s revenue rose by 36.22 percent from Rs. 1,694 crores in December 2024 to Rs. 2,308 crores in December 2025. Meanwhile, Net profit declined from Rs. 263 crores to Rs. 259 crores in the same period.
The company is generating a return on capital employed (ROCE) of 14% and a return on equity (ROE) of 12.2%, showing it earns solid returns on both its total capital and shareholders’ equity. Its debt-to-equity ratio is 0.63, indicating a moderate level of debt and a relatively balanced capital structure.
The stock looks undervalued compared to the industry, with a price-to-earnings (P/E) ratio of 8.83 versus the industry average of 16.7. It is also trading at just above its book value (1.06 times), suggesting investors are paying near the company’s net asset value, which could indicate growth potential.
As of 31st December 2025, the company’s order book stands at Rs 20,255 Cr (excluding L1), with an additional DBFOT project worth Rs 3,700 Cr awaiting Appointed Date (AD). The order book is well diversified, comprising 62% Roads, 12% Transmission, 5% Railways & Metro, 4% MMLP, 3% OFC, 1% Tunnelling, and 13% from other sectors.
For FY26, the company has set an order inflow target of Rs 10,000 Cr, of which Rs 4,800 Cr has already been secured. The company currently has 30 HAM projects in its portfolio, including 10 operational projects, 19 under construction, and 1 project awaiting AD.
The company has a set of key clients include NHAI, MoRTH, MSRDC, Maha Metro, NHIDCL, UPEIDA, NHLML, East Coast Railway, PWD Rajasthan, NHPC, BSNL, Rail Vikas Nigam, Bihar State Road Development Corporation, NTPC, Bangalore Metro, REC Power Development and others.
G R Infraprojects Ltd is a major Indian infrastructure and construction company, incorporated in December 1995 and headquartered in Udaipur, India. It specialises in engineering, procurement, and construction (EPC) services across a wide range of infrastructure sectors, including roads and highways, bridges, tunnels, airport runways, railways and metro projects, power transmission, and multimodal logistics parks.
The company also develops and operates road projects under Build‑Operate‑Transfer (BOT) and Hybrid Annuity Models (HAM) and has in‑house manufacturing units for materials like bitumen emulsion, thermoplastic paints, and metal crash barriers.
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