GMR INFRASTRUCTURE LTD : POWER PACKED PERFORMANCE AHEAD
“Vision is not enough, it must be combined with venture. It is not enough to stare up the steps, we must step up the stairs.”
As per Govt of India recent estimates, more than $500 billion of investment is required in the infrastructure development comprising of roads, railways, power, airports etc during the 11th five yr plan period. Demand for infrastructure development is on rise and is throwing up opportunities worth billions to both domestic and international players .Nowadays Public Private Partnerships (PPP) has become the most preferred option in executing such projects. Private sector cos. in India are quick and active in grabbing such opportunities to build a modern and resurgent India. Presenting today one such JEWEL in the Indian infrastructure CROWN —GMR Infrastructure ltd; one of the fastest growing infrastructure Co.in India. It’s an infrastructure co. in true sense as it is involved in various sectors such as ROADS, POWER, AIRPORT, REALITY, MINING, AIR CARGO SERVICES, AVIATION SECURITY etc. GMR group is founded by MR. G.M.Rao in 1978 carries all its businesses through its 23 subsidiary cos. Many of the prestigious projects undertaken includes development and modernisation of Istambul, Delhi and Hyderabad airport, Orissa and Chattisgarh power project, Ambala-Chandigarh road project.
The Sabiha Gokcen airport modernisation order at Istambul(Turkey) which accommodates 3.5 million passengers a day, is most prestigious feather in GMR’s cap
The terminal will be on a build-operate-transfer basis with the concession extending upto 20 years and once the new international terminal becomes operational, the existing terminal will serve the domestic passengers. GMR took over the existing airport operations and simultaneously started work on the new international airport. The terminal will cater for residents of cities like Kocaeli, Izmit and Bursa.(Turkey) These cities have a sizeable population of international travellers and will drive the traffic for the airport,
The consortium (GMR Infrastructure, Limak AS, a Turkish construction company and Malaysia Airports Holdings) bagged the contract. at $2.7 billion, to be paid to the government of Turkey over a 20-year period starting 2011. In India also there is significant growth in the air passenger traffic and fleet of aircrafts. about $8 billion investment is expected in airport sector in next few years. GMR is currently engaged in modernisation of Delhi, Hyderabad airports, setting up MRO facility at shamsabad, airport ,modern aviation academy at Hyderabad.
The power projects on which GMR is currently working are 1000 MW thermal plant in chattisgarh,1000 MW thermal plant at Dhenkanal,orrisa,180MW hydro project at HOLI Bajola, Himachal Pradesh,160MW hydro power plant at Talong arunachal pradesh. GMR is also looking for coal assets to secure fuel supply to power projects.
In ROAD sector GMR in engaged in development of total 421 kms of Highways across India. It has also signed MOU for development of 3300 acres SEZ in Tamil nadu. The total projects in all sectors are valued around Rs.14000 crs
GMR’s market cap on listing (Aug 06) was 6,953 crs and today it has gone by stunning 7.5 times up at Rs.45000 crs. Considering all these factors, past track record and consistent growth of the GMR group I strongly recommend GMR infra in your portfolio.
So, buy at around 85-95 level. Target 1:150 ;view:1 year. Tgt 2:500; view:3 years.
Keep moving ahead with long term vision and start stepping the stairs now. “The best time to plant a seed and grow a tree was 20 years ago; the second best time is now."
Amol Dhake – Managing Director
5/1, Aakar builders
0712 – 6592986 / 3241921
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