GVK Power & Infrastructure Limited is one of the leading companies in India and very active in the energy industry with a focus on the generation of power and transport and other related infrastructure development. This article explores the nature of GVK Power’s business, its financial prospects, and, more significantly, its GVK Power Share Price Target from 2024 to 2050.
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Details About The GVK Power Company
The Company was established in 1994 and is presently engaged in power generation and transmission, road infrastructure development, and airport construction. It mainly deals in the power sector and more specifically covers thermal, hydro, and gas-based power generation projects.
Over the past few years, GVK has evolved into a major player in private investment in infrastructure, with major projects located in different parts of India.The company has been in the business of power generation for over a decade and hence marks a crucial player in fulfilling the energy demand of India.
What is the Business Overview for GVK Power India?
GVK Power currently manages several thermal and hydroelectric generation facilities throughout India. Some of its key projects include:
GVK Jegurupadu Power Plant– located in Andhra Pradesh, India operates a gas-based thermal power plant.
GVK Gautami Power Plant – another one that is also gas-based, whose function is to supply energy to the South region. The northern hydel power stations and the thermal electric stations as well.
These projects play an important role in the nation for supplying electricity to millions of people.
Key Fundamentals for GVK Power
The fundamentals of GVK Power reflect the company’s financial health and its standing in the market:
Market Capitalization: Since the past few years, the market capitalization of the firm has undergone periodic changes because of the different financial results shared by GVK Power.
Debt: This is evidenced partly by the fact that the company has a large volume of debt, particularly through large-scale infrastructure facilities.
Revenue: There have been more or less consistent revenues, and apart from some fluctuation in the electricity segment, most of the earnings have come from the power sector.
PE Ratio: Price-earnings ratio which was somewhat low in indicating the stock could be undervalued.
| Market Cap | 8.37 billion INR |
| Enterprise Value | 1,870.98, 645.74 Cr |
| 52 Week High/Low | ₹17.00 and ₹4.50 |
| Stock P/E | -7.6 |
| Book Value | 7.49 |
| Dividend Yield | – |
| ROCE | 32.6% |
| ROE | -1.78% |
| Face Value | ₹1.00 |
| Price to Book Value | 1.5 |
| EPS | -0.1 |
| Debt | ₹46.0b |
| Promoters Holding | 54.25% |
What will be the Financial Performance of GVK Power?
Due to the fluctuating economic performance, GVK Power has received mixed fortunes in the past few years. The company has managed to sustain moderately consistent revenues from its power and infrastructural development projects but high operating expenses and cost of borrowing have formerly constrained the generation of sufficient profits. In recent financial years the financial performance of GVK Power has neend strong:
Revenue: GVK Power has expressed relatively healthy and stable revenue earnings mainly coming from its power plants and airport management.
Net Profit: For a long time, the firm has faced issues in achieving net profit mainly as a result of high interest charges and depreciation costs.
Debt: The company seems to have a high level of indebtedness that translates to high risk because large-capacity power plants involve high capital expenditure.
| Revenue | 223.95Cr |
| Net income | 11.15Cr |
| Diluted EPS | – |
| Net profit margin | -4.98% |
| Operating income | 122.11 Cr |