GMR Power & Urban Infra reaches new 52-week high; what’s the catalyst behind the rally?

The Indian benchmark indices ended the session significantly higher, reaching fresh all-time highs on the bourses. The BSE Sensex surged 0.47% to 67,838 level at the close. The Nifty 50 index gained 0.44% to a level of 20,192. With 1,932 shares rising on the BSE and 1,701 shares declining, the advance-decline ratio remained in favour of advances.

Conversely, broader indices exhibited lackluster performance compared to the main indices. Shares of GMR Power and Urban Infra Ltd, ranking among the top gainers in the BSE Smallcap index, maintained their strong uptrend, keeping small-cap bulls busy. On an intraday basis on Friday, shares of GMR Power and Urban Infra Ltd hit a 52-week high, reaching Rs 42.09 per share, and were locked in a 10% upper circuit on the BSE.

The stock has been consistently reaching new highs, skyrocketing more than 95% in just a month, driven by optimism generated as the company secured orders that significantly exceeded its market capitalization.

Previously, the company announced that its subsidiary, GMR Smart Electricity Distribution Private Limited (GSEDPL), had received a Letter of Award from Purvanchal Vidyut Vitran Nigam Limited. GSEDPL is entrusted with the responsibility of installing, integrating, and maintaining an impressive 50.17 lakh smart meters in the specified area. The total contract value for this undertaking reveals that the contract for the Prayagraj and Mirzapur Zone is worth Rs 2,386.72 crore, while the Varanasi and Azamgarh Zone contract is valued at Rs 2,736.65 crore.

Building on the previously mentioned orders, the company has recently been awarded a Letter of Award (LOA) from Dakshinanchal Vidyut Vitran Nigam Limited to execute a smart metering project in the Dakshinanchal area, encompassing Agra and Aligarh zones in Uttar Pradesh. Under this agreement, GSEDPL will be responsible for the installation, integration, and maintenance of 25.52 lakh smart meters in the specified regions.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.