Emkay Global Financial Services has initiated a ‘Buy’ rating on GMR Power with a target price (TP) of Rs 180, implying a 21% upside from previous close of Rs 148.5, citing multiple growth drivers that could further push the bull case TP to Rs 205.
The brokerage highlighted that GMR Power’s core thermal assets, which include a capacity of 1,650 MW, are approaching optimal performance due to coal tie-ups. Additionally, the company has secured Power Purchase Agreements (PPAs) for 90% of its capacity, which is expected to improve its debt metrics significantly.
Emkay also noted that GMR Power’s incremental smart meter contracts, potential monetization opportunities, and the settlement of disputes present considerable optionality for further upside in the stock.
With these factors in play, Emkay remains optimistic about GMR Power’s growth trajectory in the coming quarters.
