Gmr infrastructure Expert review market Sentiment buying??
8/15/2024 01:05pm
Here is a comprehensive analysis of GMR Infrastructure Limited:
1. **Expert Review**:
- **Financial Performance**: GMR Infrastructure reported a net loss of Rs. 141.65 crore for the quarter ended June 2024, widening from a net profit of Rs. 16.84 crore in the corresponding quarter of the previous year.
- **Revenue Growth**: The company's revenue from operations increased by 19% year-on-year to Rs. 2,402.20 crore during the June 2024 quarter.
- **Ebitda**: GMR Infrastructure's Ebitda stood at Rs. 1,016.35 crore in Q1FY25, compared to Rs. 860.28 crore reported in the corresponding quarter of FY24.
- **Market Sentiment**: The board of GMR Infrastructure approved alteration in the object clause of the Memorandum of Association, which may be seen as a positive step towards corporate restructuring.
- **Analyst Recommendation**: Anand Rathi has a buy call on GMR Airports Infrastructure Ltd. with a target price of Rs. 112, indicating confidence in the company's future performance.
2. **Market Sentiment**:
- **Recent Performance**: GMR Infrastructure's stock has experienced a decline, falling 2.19% on the last day to Rs. 92.73 and 3.27% over the last three days to Rs. 94.81.
- **Technical Indicators**: The stock's RSI is in the oversold territory, suggesting a potential for a rebound.
- **Buy Signals**: Despite the recent decline, the stock is expected to rise 16.32% over the next three months, with a 90% probability to hold a price between Rs. 102.25 and Rs. 121.07.
3. **Buying Consideration**:
- **Analyst Confidence**: The target price set by Anand Rathi is above the current market price, indicating potential upside.
- **Strategic Developments**: The company's strategic partnership with Groupe ADP and plans to raise funds may bolster investor confidence.
- **Investor Caution**: Investors should consider the company's recent financial losses and the need for fund-raising activities.
In conclusion, while there are positive indicators such as the approved alteration in the object clause and the buy recommendation from Anand Rathi, investors should weigh the company's recent financial performance and market volatility before making a buying decision. The mixed market sentiment and the need for fund-raising activities also warrant caution.