Gayatri Projects is primarily into roads and irrigation construction activity and has an order book of over Rs 10,000 crore.
The Company executes civil works, including roads, canals, airport runways, ports and harbors, dams and reservoirs, and railways across India.
The Company has presence in engineering, procurement and construction (EPC), and construction of road, irrigation and industrial projects across India. The Company holds interests in infrastructure, power, hospitality and real estate industry. The Company has executed projects, comprising approximately 5,094 kilometers of roads; approximately 1,200 kilometers of irrigation canals, and various industrial projects. The Company’s subsidiaries include Gayatri Infra Ventures Limited, Sai Maatarini Tollways Limited and Gayatri Energy Ventures Private Limited.
Chairman: T Subbarami Reddy
Market Cap: 2100 Crore
Recent Orders bagged :
- Rs 675 crore order from the NHAI for 6-laning of Eastern Peripheral Express Way in Haryana and Uttar Pradesh.
- 4-laning of National Highway(NH)-233 on Ghaghra Bridge-Varanasi section in 4 stretches amounting to : (Aug 26, 2015)
- Rs 741 crore
- Rs 785 crore
- Rs 986 crore and
- Rs 806 crore
- Rs 4744 crore freight corridor contract (2 March 2016)
- Rs 175 crore from Hyderabad Growth Corridor Limited (26 March 2016)
- Rs. 340 crore road project in Nagaland (11 April 2016)
- Rs 700 crore from CIDCO as part of navi Mumbai International Airport (20 Jun 2016 )
Triggers:
- Trading at PE of 29 which is still reasonable
- May get irrigation canals project
Cons:
- Stock is trading at 2.95 times its book value
- Company has low interest coverage ratio.
- Promoter’s stake has decreased
- The company has delivered a poor growth of 5.03% over past five years.
- Company has a low return on equity of 7.12% for last 3 years.
- Contingent liabilities of Rs.9616.58 Cr.
- Promoters have pledged 90.37% of their holding
Disclosure: Invested as I was bullish on Modi govt for infra, it has already had a 10 bagger runup in last two years not sure if it makes sense to hold it further. Views welcome.