Porinju Veliyath Latest Stock Pick GPT Infraprojects Limited

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Pee Vee
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Porinju Veliyath Latest Stock Pick GPT Infraprojects Limited

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Porinju Veliyath has through EQUITY INTELLIGENCE INDIA PRIVATE LIMITED [PMS] bought 640000 shares of GPT Infraprojects Ltd at Rs. 125.68. Another lot of 240000 shares were bought at Rs. 125.74.

Porinju bought the stock of GPT Infra by way of a bulk deal on 7th August 2017.

The seller was NINE RIVERS CAPITAL LIMITED, one of the major investors in GPT Infra.

Will GPT Infra be a multibagger?

GPT Infraprojects Limited (GPT Infra), incorporated in 1980, is the flagship company of the GPT Group based out of Kolkata, India. GPT Infra has two divisions – infrastructure and sleeper. The sleeper division’s manufacturing units are located at Panagarh (District Burdwan, West Bengal, India), Ladysmith (KZN, South Africa) and Tsumeb (Namibia). It executes civil and infrastructure projects for railways, roads, airports, industrial and urban areas, and manufactures concrete sleepers for railways in India and abroad.

The company’s sleeper division has an installed capacity of 480,000 units at Panagarh, West Bengal and supplies concrete sleepers to several countries including South Africa, Namibia, Bangladesh and Sri Lanka. It is one of the core companies involved in the construction of mega bridges with steel superstructure for Indian Railways. GTP’s projects include a rail cum road bridge over the Ganga river at Patna, a railway bridge over the river Kosi, turnkey construction of 38 bridges for Tripura PWD, bridges for Eastern Railway with pile foundation and steel superstructure, a cable stay bridge over railway station at Burdwan, etc.

Key Highlights

Steady flow of orders for infrastructure division

GPT Infra’s infrastructure division has bagged projects from Kanpur Development Authority, Northeast Frontier Railway, GMR Infrastructure Limited and Rail Vikas Nigam Limited, among others – amounting to Rs 18,290 million on its order book currently.

Global footprint in concrete sleeper division

GPT Infra has executed two orders for turnkey installation of concrete sleeper plants and transfer of production technology, training and track design in Myanmar. It has supplied dual gauge concrete sleepers for the Jamuna Bridge Rail Project in Bangladesh and supplied 300,00 MG sleepers and 200 sets turnouts. Similarly, the company has supplied sleepers to Sri Lanka, South Africa and Namibia. It received Rs 2,465 million worth orders from GMR Infrastructures Limited in November 2015 for supply of 1.45 million sleepers, for the World Bank funded eastern dedicated freight corridor contract.

Key Risks

Working capital intensive
nature of the business
Possibility of delayed clearance that could upset execution schedules
Volatility in prices of raw materials such as steel, cement, and bitumen
Decrease in government spending on infrastructure that could affect order book
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