GMR Power shares rallied over 4% in the morning trade today after a positive brokerage note from B&K Securities. GMR Power shares also hit a new record high of Rs 141.21 in the trade today on the back of this brokerage note.
B&K Securities has initiated coverage on GMR Power, recommending a “Buy” rating with a target price of ₹184 per share, implying a potential upside of 38% from the current market price. The brokerage is optimistic about GMR Power’s future growth prospects, driven by several strategic factors.
B&K Securities highlighted the government’s renewed focus on thermal power, which positions GMR Power favorably for long-term growth in the energy sector. The company has also successfully restructured its balance sheet through favorable settlements, strengthening its financial position.
In addition to its core focus on power generation, GMR Power is diversifying its portfolio by entering the smart meter sector, which is expected to enhance its growth avenues. The company is also gradually shifting its business model towards energy generation, utility services, and electric vehicle (EV) charging infrastructure.
B&K Securities believes that these strategic initiatives will enable GMR Power to improve and sustain its financial performance, making it a compelling investment opportunity at the current valuation. Investors are advised to monitor the stock as the company continues to execute its growth strategies in the evolving energy landscape.
