GMR Infrastructure takes off on diversification

GMR Infrastructure takes off on diversification

GMR Infrastructure surged 3.31% to Rs 182.35 at 10:27 IST on BSE on reports the company is foraying into air charter services.

Meanwhile, BSE Sensex was up 134.61 points or 0.76% to 17,785.18 following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 4.93 lakh shares were traded in the counter. The scrip had an average daily volume of 31.01 lakh shares in the past one quarter.

The stock hit a high of Rs 182.90 and a low of Rs 177.85 so far during the day. The stock had a 52-week high of Rs 268.70 on 6 December 2007 and a 52-week low of Rs 65.43 on 3 April 2007.

The large-cap scrip had underperformed the market over the past one month till 25 February 2008, declining 9.21% compared to the Sensex’s decline of 3.87%. It had also underperformed the market in the past one quarter, declining 28.19% compared to Sensex’s decline of 7.72%.

The company’s current equity is Rs 364.13 crore. Face value per share is Rs 2.

The current price of Rs 182.35 discounts its Q3 December 2007 annualized EPS of Rs 0.34, by a PE multiple of 536.32.

As per recent reports, GMR Infrastructure is entering into the corporate jet market with a capital expenditure plan of Rs 700 crore. GMR Aviation, set up to drive this charter venture, will have an initial fleet size of 6 nine-seater aircraft and two choppers, the reports added.

On 1 February 2008, a consortium of GMR Infrastructure bagged a contract from the government of Nepal to build a 300-megawatt hydroelectric project in Nepal.

In November 2007, GMR Energy, a wholly owned subsidiary of GMR Infrastructure entered into a share purchase and joint venture agreement to acquire 80% stake of Himtal Hydro Power Company.

GMR Infrastructure’s net profit rose 2750.9% to Rs 15.68 crore on 263.8% rise in total income to Rs 23.54 crore in Q3 December 2007 over Q3 December 2006.

GMR Infrastructure's principal activity is to generate, transmit and distribute electrical power. It also develops, maintains and operates airports and roads.