Shares of GMR Power and Urban Infra Ltd (GMRP&UI) surged 5% to ₹156.04 in early trading, hitting the upper circuit after Emkay Global Financial Services initiated a ‘Buy’ rating on the stock with a target price of ₹180, indicating a 21% upside from the previous close of ₹148.5. Emkay cited multiple growth drivers that could push the bull case target price to ₹205.
Key reasons behind the rally:
- Core thermal assets: GMR Power’s 1,650 MW thermal capacity is nearing optimal performance due to coal tie-ups.
- Power Purchase Agreements (PPAs): The company has secured PPAs for 90% of its capacity, expected to improve debt metrics.
- Smart meter contracts & monetization opportunities: These present further upside potential, alongside dispute settlements.
Emkay remains optimistic about the company’s growth trajectory in the coming quarters, leading to a positive market response.
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