G R INFRAPROJECTS LTD - One Page Profile

G R Infraprojects Ltd is an EPC company with experience in design and construction of various road and highway projects across 15
states in India. It is the leading construction company in India and has constructed and desgined 100 road projects across 16 States
in India. Its principal business of civil construction which accounts for ~90% of revenues includes EPC, BOT, and HAM projects in the
road sector and EPC projects in railway, metro, airport runways and Optical Fibre Cable (OFC) projects. Apart from road
construction, Co. has also ventured into the Power Transmission business as a part of its diversification strategy.

As of Q2FY24, the order book stands at Rs. 20,000+ crs. As of Q2FY24, company has 3 Road projects in UP, another in Maharshtra, a
ropeway project in J&K, few more road projects in MP, Karnataka, Telangana, Bihar etc. These are the top clients: NHAI,
NHIDCL,PWD,UPEIDA,MORTH, NHLML, Rail Vikas Nigam Ltd., REC,NHPC etc.

INR (Crs)
Key Financial Metrics Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Share Price
Total Sales 5,283 6,373 7,844 8,458 9,482 2500
Sales Growth (y-o-y) 68.20% 20.64% 23.09% 7.83% 12.10%
2000
Gross Profit Margins (%) 32.23% 33.03% 30.66% 29.11% 35.51%
EBITDA Margins (%) 24.30% 24.90% 23.62% 20.52% 26.93% 1500
EBIT Margins (%) 21.48% 21.94% 20.73% 17.19% 24.34%
Net Profit Margins (%) 13.57% 12.57% 12.17% 9.84% 15.34% 1000

Earnings Per Share (In Rs) 72.10 80.57 96.06 86.03 150.41 500
EPS Growth (y-o-y) 76.53% 11.75% 19.23% -10.44% 74.83%
0
Dividend Per Share (In Rs) - - - - -

2021
2021
2021
2022
2022
2022
2022
2022
2022
2023
2023
2023
2023
2023
2023
2024
2024
Dividend Growth (y-o-y) 0.00% 0.00% 0.00% 0.00% 0.00%

Key Financial Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Volume

Price to Earnings 17.83x 6.68x 1000000m

EV/EBITDA 1.11x 1.43x 1.99x 10.96x 5.73x 800000m

EV/Sales 0.27x 0.35x 0.47x 2.25x 1.54x 600000m

Price to Book Value 0.00x 0.00x 0.00x 3.08x 1.55x 400000m
Return on Equity (%) 32.14% 26.45% 23.99% 17.29% 23.21% 200000m
Return on Capital Employed (%) 34.84% 27.32% 22.96% 16.34% 21.72% 0m
Return on Invested Capital (%) 19.61% 15.14% 12.44% 9.25% 13.01% 1 1 2 2 2 3 3 3 4
2 02 2 02 2 02 2 02 2 02 2 02 2 02 2 02 2 02
Reinvestment Rate (%) 80.02% 60.99% 65.64% 29.63% 36.89%

Top 10 Shareholders N. Shares (in Crs) % Holding Market Value (in Crs) Share Holding Pattern
Lokesh Builders Pvt Ltd 3.1 31.83% 4,166
SBI Large & Mid Cap 0.7 6.79% 882 Promotors 79.74%
Vinod Kumar Agarwal 0.5 5.11% 665 FII 0.57%
Harish Kumar Agarwal 0.4 4.77% 570 DII 15.86%
Ajendra Agarwal 0.4 4.44% 570 Public &… 3.82%
Mahendra Agarwal 0.4 4.36% 570

Managerial Remuneration Designation Remuneration X of Median Salary Capital Structure

Mr Vinod Kumar Agarwal Chairman & WTD 7.73 309x Share price as on 5-04-2024 1,353
Mr. Ajendra Kumar Agarwal MD 7.96 319x Number of shares o/s 10
Mr. Vikas Agarwal WTD 3.89 156x Market Capitalization 13,077
Mr. Anand Rathi CFO 1.71 - Less: Cash & Equivalent (779)
Notes: Add: Total Debt 5,697
1. The number of permanent employees on 31 March, 2023 was 16,157. Add: Minority Interest 0
2. Median remuneration of employees- Increased by 3.9%.
3. Average remuneration of Employees excluding KMP- No change. Enterprise Value 17,995

Analysis & Updates

A current Investigation is going on in the incident of a bridge settlement in one of GRIL's under construction HAM Project. As per primary reports, the Incident occurred due
to excessive water flow in the river underneath while no human casualities were reported.
Singapore based global port operator PSA International has ventured into rail-linked ICD operations in India partnering with G R Infraprojects, the entity developing a Multi
Model Logistics park (MML) in Indore.
GR Infra bags Rs. 41.9 cr transmission project in MP From REC, for Evacuation of RE projects in Raigarh (1000 MW)
The company has a strong ROCE which is estimated to be above its cost of capital. If we look at the ROIC of the company, it is below our framework of 18%. However, if we
calculate the 10Y Reinvestment rate it stood at 170%. From which we derived the Inrinsic Compounding rate to be 24%. In 1 Year, the Returns due to PE Rerating stood at
49%, whereas the Return from earnings for the same period stood at -20%.
Cuurently, the company is undervalued as depicted by a High EBIT/EV ratio of 11.4 and a low P/E ratio of 6.68x. The Company's High Debt/Equity ratio (0.93) and negative Free
Cash Flows are concerning. If GR Infra can keep growing EBIT at last year's rate of 11%, then it can be eaiser to manage it's debt load. On the FCF side the company is showing
efforts to generate positive FCF, as in Mar21 it was -966cr and in Mar 23 it was -85cr.
G R Infraprojects is a good company to track but not too Enthusiastic.
Disclaimer: This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered
research Analyst before making any investments.

Sources: Screener.in, Equitymasters.com

Atharva Belhekar