GVK Power & Infra Ltd. buy @ 2.85 with Target of Rs. 5+ and then 7+ in a year

 

GVK Power & Infrastructure Ltd

GVKPIL is the flagship company of Hyderabad-based GVK group. GVKPIL acts as an investment vehicle of the GVK group for all its investments in the infrastructure sector and is the ultimate holding company of diversified infrastructure assets of the group.

GVK Power & Infrastructure Limited (GVKPIL) is the flagship company of the GVK Group (GVK). GVK was established nearly four decades ago by Dr. G.V. Krishna Reddy, the Chairman & Managing Director of the company. GVK is a diversified conglomerate with interests in a wide range of businesses including power, roads, urban infrastructure, bioscience, hotels and mining.

Promotors holding in Company is 54% with Zero “0” Pledge Shares

As per the Annual Report 2021-22 Company is having

·       Investment of Rs. 179 Crore in Mutual Funds

·       Cash balance of Rs. 127 Crore

·       Fixed deposits of Rs. 422 Crore

·       Total Rs. 728 Crore

 

Business Segments

Energy - Combined Cycle Power Plant (gas/naphtha based), Thermal (coal based) and Hydro Power Projects. 

Transportation - It currently operates the 542.4 lane Kms Jaipur - Kishangarh Expressway road project in Rajasthan.

 

Revenue Mix FY22
Power - 58%
Roads - 41%
Others - 1% 

The company made an Exceptional income of Rs. 2500 Crore through sell of it's Airport business to Adani Group

After that company has merged it's power and Road business with main company and tried to turnaround the business Now Company is in Cash Profit.

542.4 Kms Jaipur - Kishangarh Expressway in Rajasthan

Alaknanda Hydroelectric Project, Uttarakhand

The Alaknanda hydroelectric project is a 330MW hydropower generating station developed on the Alaknanda River in Uttarakhand, India.

Group info

last but not least  EMRI 108 tollfree services

“More than One million lives saved over 22,000 Emergencies served every day.”

A three digit toll free emergency response number – 108 is accessible from all fixed lines and mobile phones across the locations that this service is available in.

Buy FMNL (Future Market network) @ current price 5.30 Rs. 7+ within 3 months Rs. 10 + in a year

Company have mall value of Around 1000 crore+ against it's debt of around Rs. 500 Crore

Incorporated in 2008, Future Market Networks Limited (FMNL) is a part of the Future Group promoted by the Biyani family. FMNL is a public limited company, engaged in the mall leasing and sub-leasing business enabling the infrastructure for future market, currently managing approximately 1.40 million sq. ft. of retail space and owns various real estate properties across India. The company also provides services such as housekeeping, mall promotions, security and parking services.

Turned to profitability in the last two quarters

 Future Market Networks Limited (FMNL) is engaged into the leasing and sub-leasing of retail spaces, OOH Media business and infrastructure project management consultancy. FMNL shares the group name and is majorly owned by promoter group companies. The company shall receive considerable backing, given Future Group’s strategic importance for retail spaces. Future Group being a dominant player in the retail space, they can be able to control the entire activity cycle – concept design, tenant-mix, branding, leasing, etc. The company currently manages approximately 1.32m square feet of retail space and owns various real estate properties across India.

Part of Future Group
The company is a part of the Future Group which is controlled by Kishore Biyani. It manages the retail real estate portfolio of the group and leases out its space to the future group of companies and others.

The whole Future group of companies are in crisis due to high debt and are unable to repay loans. They are also stuck in a corporate battle between Amazon and Reliance since Reliance announced 

Sub-Leasing Model
The company's majority of business is based on the sub-leasing model. It generates ~15% of total revenues from own properties only & the rest 85% is generated by a way of sub-leasing properties

The company owns 3 mall spaces with total area of ~5.6 lakh sq. ft. in Mumbai, Kolkata and Siliguri. These mall spaces are taken on leases and are sub-leased.
Majority of revenues from this segment are from tenants outside of the future group

Details of Owning profitable Malls