NSEI:GMRINFRA

Stock Analysis Report

Executive Summary

GMR Infrastructure Limited engages in engineering, procurement, and construction (EPC) contracting activities in India and internationally.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • GMR Infrastructure is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has GMR Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

NSEI:GMRINFRA

-4.1%

IN Construction

-2.1%

IN Market


1 Year Return

-21.9%

NSEI:GMRINFRA

-14.7%

IN Construction

-14.7%

IN Market

GMRINFRA underperformed the Construction industry which returned -14.7% over the past year.

GMRINFRA underperformed the Market in India which returned -14.7% over the past year.


Share holder returns

GMRINFRAIndustryMarket
7 Day-2.0%-4.1%-2.1%
30 Day2.0%-7.5%-3.9%
90 Day-12.1%-18.4%-10.1%
1 Year-21.9%-21.9%-13.8%-14.7%-12.9%-14.7%
3 Year13.7%13.7%16.7%13.0%17.7%11.5%
5 Year-39.6%-41.0%28.9%21.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is GMR Infrastructure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GMR Infrastructure undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether GMR Infrastructure is trading at an attractive price based on the cash flow it is expected to produce in the future. But as GMR Infrastructure has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of GMRINFRA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through GMR Infrastructure regulatory filings.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is GMR Infrastructure expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

74.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GMR Infrastructure's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

GMR Infrastructure is not considered high growth as it is expected to be loss making for the next 1-3 years.

GMR Infrastructure's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

Unable to compare GMR Infrastructure's earnings growth to the India market average as it is expected to be loss making during the next 1-3 years.

Unable to compare GMR Infrastructure's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if GMR Infrastructure will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has GMR Infrastructure performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GMR Infrastructure does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare GMR Infrastructure's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare GMR Infrastructure's 1-year growth to the IN Construction industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if GMR Infrastructure has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if GMR Infrastructure has efficiently used its assets last year compared to the IN Construction industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if GMR Infrastructure improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is GMR Infrastructure's financial position?


Financial Position Analysis

GMR Infrastructure's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

GMR Infrastructure's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GMR Infrastructure's level of debt (1929.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (417.1% vs 1929.5% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

GMR Infrastructure has sufficient cash runway for more than 3 years based on current free cash flow.

GMR Infrastructure has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 111.3% each year.


Next Steps

Dividend

What is GMR Infrastructure's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate GMR Infrastructure's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate GMR Infrastructure's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as GMR Infrastructure has not reported any payouts.

Unable to verify if GMR Infrastructure's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as GMR Infrastructure has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of GMR Infrastructure's dividends in 3 years as they are not expected to pay a notable one for India.


Next Steps

Management

What is the CEO of GMR Infrastructure's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Grandhi Kumar (44yo)

6.1yrs

Tenure

0

Mr. Grandhi Kiran Kumar, B.Com, MBA has been the Chief Executive Officer and Managing Director at GMR Infrastructure Limited since November 14, 2017 and July 28, 2013 respectively. He join the company sinc ...


CEO Compensation Analysis

Grandhi's remuneration is lower than average for companies of similar size in India.

Insufficient data for Grandhi to compare compensation growth.


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

The average tenure for the GMR Infrastructure management team is less than 2 years, this suggests a new team.


Board Age and Tenure

12.9yrs

Average Tenure

67.5yo

Average Age

The average tenure for the GMR Infrastructure board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹980,30029 Oct 18
Satyavathi Grandhi
EntityIndividual
Shares63,000
Max Price₹15.56
Buy₹775,00029 Oct 18
Satyavathi Grandhi
EntityIndividual
Shares50,000
Max Price₹15.50
Buy₹1,481,99423 Oct 18
Satyavathi Grandhi
EntityIndividual
Shares95,000
Max Price₹15.60
Buy₹111,318,87610 Oct 18
Varalakshmi Enterprises Llp
EntityCompany
Shares6,704,975
Max Price₹16.60
Buy₹19,839,97210 Oct 18
Ragini Grandhi
EntityIndividual
Shares1,240,000
Max Price₹16.00
Buy₹32,685,26927 Sep 18
GMR Enterprises Private Limited
EntityCompany
Shares2,000,000
Max Price₹16.34

Ownership Breakdown


Management Team

  • Grandhi Rao (70yo)

    Founder & Non-Executive Chairman

    • Tenure: 11.8yrs
  • Saurabh Chawla (55yo)

    Executive Director of Finance & Strategy and CFO

    • Tenure: 0.5yrs
    • Compensation: ₹20.05m
  • Grandhi Kumar (44yo)

    CEO, MD & Director

    • Tenure: 6.1yrs
  • Madhu Terdal (64yo)

    Executive Director of Strategic Initiatives & Whole Time Director

    • Tenure: 0.0yrs
    • Compensation: ₹22.54m
  • Yuvraj Mehta

    Group Head & VP of Corporate Communications

    • Tenure: 0.0yrs
  • Tangirala Ramana (46yo)

    Compliance Officer & Company Secretary

    • Tenure: 1.8yrs
    • Compensation: ₹5.58m

Board Members

  • Srinivasan Sandilya (71yo)

    Non Executive & Independent Director

    • Tenure: 6.9yrs
    • Compensation: ₹240.00k
  • Grandhi Rao (70yo)

    Founder & Non-Executive Chairman

    • Tenure: 11.8yrs
  • Grandhi Butchi Raju (44yo)

    Group Promoter Director

    • Tenure: 20.6yrs
  • Grandhi Kumar (44yo)

    CEO, MD & Director

    • Tenure: 6.1yrs
  • R. S. S. L. Bhaskarudu (78yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: ₹700.00k
  • Srinivas Bommidala (56yo)

    Group Non-Executive Promoter Director

    • Tenure: 23.3yrs
  • Boda Nageswara Rao (65yo)

    Group Non-Executive Director

    • Tenure: 0.0yrs
  • N. Sarabeswaran (75yo)

    Non Executive & Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹520.00k
  • S. Rajagopal (79yo)

    Non Executive Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹560.00k
  • Madhu Terdal (64yo)

    Executive Director of Strategic Initiatives & Whole Time Director

    • Tenure: 0.0yrs
    • Compensation: ₹22.54m

Company Information

GMR Infrastructure Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • GMR Infrastructure Limited
  • Plot No. C-31, G Block
  • Naman Centre, 7th Floor
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532754BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2006
GMRINFRANSEI (National Stock Exchange of India)YesEquity SharesININRAug 2006

Biography

GMR Infrastructure Limited engages in engineering, procurement, and construction (EPC) contracting activities in India and internationally. The company operates through Airports, Power, Roads, EPC, and Oth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:46
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.