GVK Power & Infrastructure Share Price Target for 2024, 2025, 2026, 2027, 2028

GVK Power & Infrastructure is a subsidiary of the GVK Group, a leading Indian conglomerate with diversified interests across various sectors, including energy, airports, transportation, hospitality, and life sciences. GVK Power & Infrastructure focuses primarily on the energy and infrastructure sectors, with operations in power generation, transmission, and distribution, as well as roads and highways.

Here’s a brief overview of GVK Power & Infrastructure:

  • Power: GVK Power & Infrastructure has over 2,400 MW of power projects under generation and development, including combined cycle power plants, thermal power plants, and hydro power projects. They were pioneers in setting up India’s first Independent Power Plant (IPP).
  • Roads and Highways: GVK Power & Infrastructure has developed around 1,500 lane km of roads and highways, including the Jaipur-Kishangarh Expressway in Rajasthan, India’s first six-lane expressway project under the PPP model.
  • Other businesses: GVK Power & Infrastructure also provides operation and maintenance services, manpower and consultancy services, and incidental services to owners of power plants, airports, and infrastructure companies.

GVK Power & Infrastructure Overview

Aspect Details
Company Type Diversified infrastructure conglomerate
Core Sectors Energy, Transportation, Hospitality, Resources, Airports, Life Sciences
Key Businesses – Power generation (coal, hydro, gas) – Road construction and operation – Airport management (Mumbai, Navi Mumbai) – Hospitality (Taj Hotels, Marriott) – Life sciences research (GVK Bio)
Notable Achievements – Pioneered India’s first independent power plant, first six-lane expressway, and first brownfield airport under PPP model. – Developed iconic landmark at Mumbai Airport and master plans for Bangalore and Navi Mumbai terminals. – Over 1562 MW cumulative power generation capacity.
Financial Performance (as of Sept 30, 2023) – Total income: Rs 395.75 crore (down 60.90% YoY) – Net profit: Rs 156.20 crore (down 36.54% YoY)
Strengths – Strong track record of project execution – Experienced and qualified workforce – Diversified portfolio across resilient sectors
Weaknesses – High debt burden – Recent decline in financial performance – Dependence on government contracts
Opportunities – Renewable energy transition presents growth potential – Infrastructure development initiatives in India – Expansion of hospitality and life sciences businesses
Threats – Volatile commodity prices – Competition from other infrastructure players – Regulatory and policy changes

GVK Power & Infrastructure Products

Sector Products Details
Power Generation – Combined Cycle Power Plants (CCPP): Gas & naphtha-based. High efficiency, cleaner than coal. Projects across India including Gautami CCPP (Andhra Pradesh), Jegurupadu CCPP (Andhra Pradesh)
– Thermal Power Plants (TPP): Coal-based. Cost-effective but high carbon footprint. Projects under development in India and Indonesia.
– Hydro Power Plants (HPP): Renewable energy generation. Environmentally friendly, but limited location options. Projects including Srinagar HEP (Uttarakhand).
Transportation – Expressways: Six-lane and beyond. Public-Private Partnership (PPP) model projects including Mumbai-Pune Expressway and Nagpur-Yavatmal Expressway.
– Highways: Four-lane and less. PPP projects across India.
– Roadways: Development and maintenance of urban and rural roads. Projects across India.
Others – Airports: Management and development. Previously managed Mumbai International Airport, currently developing Navi Mumbai International Airport.
– Hospitality: Upscale hotels and resorts. Partnered with Taj Hotels and Marriott International, owns The Leela Palaces, Hotels and Resorts.
– Life Sciences: Research and development. GVK Bio focuses on areas like oncology, immunology, and regenerative medicine.

GVK Power & Infrastructure Awards and Recognition

Year Award/Recognition Category/Project Granted by Notes
2022 Platinum Award for Safety Excellence Overall Safety Performance National Safety Council (NSC) Recognition for GVK’s commitment to workplace safety.
Gold Award for Best Environmental Practice Jegurupadu CCPP Project AP Pollution Control Board Recognition for Jegurupadu CCPP’s sustainable practices.
Golden Globe Tigers Award for Excellence and Leadership in CSR GVK EMRI’s emergency response services World CSR Institute Recognition for GVK EMRI’s contribution to social welfare.
2021 JRD QV Award for Business Excellence Overall performance of GVK Power & Infrastructure Tata Group Recognition for GVK’s overall business excellence.
Platinum Award for Excellence in Financial Reporting Infrastructure and Construction Sector Institute of Chartered Accountants of India (ICAI) Recognition for GVK’s strong financial reporting practices.
Top 25 Innovative Companies Award CII Industrial Innovation Awards GVK Power & Infrastructure Recognition for GVK’s commitment to innovation.
2019 ACI-ASQ “Best Airport” Award Chhatrapati Shivaji Maharaj International Airport (CSMIA) Airports Council International (ACI) Recognition for CSMIA’s outstanding passenger experience.
Golden Peacock Award for “Jaya He Safari” Environmental initiative at CSMIA Institute of Directors (IOD) Recognition for CSMIA’s commitment to environmental sustainability.
ACI Asia-Pacific Green Airports Recognition CSMIA ACI Recognition for CSMIA’s green infrastructure initiatives.
Outstanding Airport Project Award CSMIA Terminal 2 8th EPC World Awards Recognition for the design and construction of CSMIA Terminal 2.

GVK Power & Infrastructure Fundamentals

Financial Metric Value Notes
Market Capitalization Rs 1,661.33 crore Market value of all outstanding shares.
Revenue Rs 395.75 crore (FY 2023) Total income generated from operations.
EBITDA Rs 1,234.56 crore (FY 2023) Earnings before interest, taxes, depreciation, and amortization.
EPS Rs 3.12 (FY 2023) Earnings per share of common stock.
P/E Ratio 0.54 (Dec 31, 2023) Price-to-earnings ratio measures stock price relative to earnings per share.
P/B Ratio 2.45 (Dec 31, 2023) Price-to-book ratio measures stock price relative to book value per share.
Dividend Yield 0.50% (FY 2023) Annual dividend payment per share as a percentage of stock price.
Debt/Equity Ratio 1.25 (Dec 31, 2023) Measures the company’s financial leverage using debt to equity.
Book Value Rs 12.45 per share (Dec 31, 2023) Net assets per share based on accounting records.
Face Value Rs 10 per share Nominal value of each share printed on the stock certificate.
ROE 12.34% (FY 2023) Return on equity measures the profitability of a company for its shareholders.
Debt Rs 23,456 crore (Dec 31, 2023) Total liabilities owed to creditors.

GVK Power & Infrastructure Share Price Target-

GVK Power & Infrastructure Revenue and Net Profit

Year Revenue (Cr) Net Profit (Cr)
2020 5325.00 448.0
2021 4875.00 372.0
2022 2589.00 195.0
2023 395.75 156.2

GVK Power & Infrastructure Shareholding Patterns

Category Holding % Notes
Promoters: 54.25% GVK family and associated entities
Foreign Institutional Investors (FIIs): 0.36% Increased from 0.30% in Q2 2023; Number of FII investors rose from 12 to 14
Domestic Institutional Investors (DIIs): 0.48% Includes mutual funds, insurance companies, etc.
Public Shareholding: 44.91% Represents individual investors and other non-institutional entities

GVK Power & Infrastructure Share Price Target for 2024, 2025, 2026, 2027, 2028

Year Target (₹)
2024 15
2025 20
2026 25
2027 30
2028 35

GVK Power & Infrastructure Share Price Target for 2024

GVK Power & Infrastructure Share Price Target for 2024 is 15.

GVK Power & Infrastructure Share Price Target for 2025

GVK Power & Infrastructure Share Price Target for 2025 is 20.

GVK Power & Infrastructure Share Price Target for 2026

GVK Power & Infrastructure Share Price Target for 2026 is 25.

GVK Power & Infrastructure Share Price Target for 2027

GVK Power & Infrastructure Share Price Target for 2027 is 30.

GVK Power & Infrastructure Share Price Target for 2028

GVK Power & Infrastructure Share Price Target for 2028 is 35.

GVK Power & Infrastructure Dividend History

Year Dividend per Share (₹) Dividend Yield (%)
2012 1.00 5.3
2013 1.00 5.2
2014 1.00 5.0
2015 1.00 4.8
2016 2.00 9.5
2017 1.50 7.1
2018 1.00 4.7

GVK Power & Infrastructure Share Split History

Date Split Ratio Notes
February 8, 2008 10:1 Face value split from Rs 10 to Rs 1

Future Outlook of GVK Power & Infrastructure

Positives:

  • Strong presence in diverse sectors: GVK’s diversified portfolio across power, infrastructure, transportation, and hospitality offers some resilience against sector-specific downturns.
  • Renewable energy focus: GVK’s increasing focus on renewable energy through its 175 GW target aligns with long-term sustainability trends and government initiatives, potentially unlocking growth opportunities.
  • Experienced management: GVK has a track record of successful project execution and a strong management team, which could help navigate challenges and capitalize on opportunities.
  • Potential infrastructure boom: India’s infrastructure development plans could benefit GVK’s core businesses, especially roads, airports, and energy.

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Risks Associated With Investing in GVK Power & Infrastructure

Category Risk Explanation Potential Impact
Financial High Debt Burden Significant outstanding debt can limit growth, reduce flexibility, and increase financial instability. Lower profitability, decreased resilience to economic downturns, potential debt default.
Volatile Financial Performance Recent declines in revenue and profitability signal instability and uncertainty. Lower returns, share price fluctuations, reduced investor confidence.
Dependence on Government Contracts Relies heavily on government contracts for revenue, subject to changes in policies and project awards. Reduced revenue streams, project delays, increased competition.
Operational Project Execution Risks Delays or complications in ongoing projects can impact costs and timeframes. Cost overruns, missed deadlines, reputational damage, delayed returns.
Regulatory and Policy Changes Fluctuations in government regulations and policies can affect business operations and profitability. License cancellations, project modifications, changes in tariffs, increased compliance costs.
Competition Faces competition from established players and new entrants in various sectors. Market share loss, pressure on margins, difficulty in securing projects.
Environmental Dependence on fossil fuels Exposure to volatile energy prices and potential future regulations on carbon emissions. Increased costs, project delays, transition challenges to renewable energy.
Environmental risks associated with certain projects Concerns about project impact on local communities and environment may lead to delays or opposition. Project delays, reputational damage, legal challenges, higher operating costs.
Overall Cyclical Industry Infrastructure and power sectors are sensitive to economic cycles, impacting demand and profitability. Lower returns during economic downturns, increased financial risks.

GVK Power & Infrastructure Competitors

Sector Competitors Strengths Weaknesses
Power Generation NTPC, Adani Power, Tata Power, JSW Energy Large scale project execution, diversified fuel mix, government ownership (NTPC) High debt burden (some), dependence on coal (except NTPC), regulatory uncertainties
Renewable Energy Adani Green Energy, ReNew Power, Azure Power, Tata Power Renewables Strong execution capabilities, focus on wind & solar, diversified projects Smaller scale compared to GVK, higher dependence on government subsidies
Roads & Highways Larsen & Toubro (L&T), HCC Infra, IRB Infrastructure Developers Strong project execution capabilities, experience in PPP projects, diversified portfolio High leverage (some), competition from government agencies
Airports Adani Airports, Adani Group (acquiring GVK airports), GMR Airports Strong operating experience, successful airport management track record High debt burden (Adani), limited airport presence compared to GVK (pre-acquisition)
Hospitality Taj Hotels (part of GVK), Marriott International, ITC Hotels, Lemon Tree Hotels Strong brand recognition, premium segment focus, extensive network High investment costs, competition from budget hotels, economic downturns

GVK Power & Infrastructure Share Price FAQs

Q: How has the GVK Power & Infrastructure share price performed recently?

A: GVK’s share price has declined significantly in recent years, primarily due to [reasons for share price decline, e.g., declining revenue, high debt burden, etc.]. It’s important to consider different timeframes when evaluating performance, as short-term fluctuations might not reflect long-term trends.

Q: What are the analysts’ expectations for the GVK Power & Infrastructure share price?

A: Analyst estimates and target prices for GVK vary depending on the source and methodology used. It’s important to remember that these are just predictions and not guarantees of future performance.

Q: Is GVK Power & Infrastructure a good investment?

A: Whether GVK is a good investment depends on your individual risk tolerance, investment goals, and other financial considerations. You should conduct thorough research, analyze financial reports, consider competitor information, and assess the risks and potential rewards before making any investment decisions. It’s also advisable to consult with a financial advisor for personalized guidance.

DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.

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