Share of GVK Power & Infrastructure Limited is currently trading at around Rs.4/- Existing as well as Prospective Investors are asking for GVK Power Share Price Target 2025 as well as targets for 2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the GVK Power Share Price Target 2025 as well as targets for 2030, 2035 and 2040.
Discussion & Analysis of Business & Financial performance with future Business Prospects of GVK Power & Infrastructure Ltd:
GVK Power & Infrastructure Ltd. (GVKPIL), a key player in India’s infrastructure and energy sectors, is currently navigating a complex financial landscape marked by debt challenges, restructuring efforts, and ongoing insolvency proceedings
Financial Performance
In the quarter ending December 2024, GVKPIL reported a consolidated net loss of ₹14.13 crore, a significant improvement from the ₹59.29 crore loss in the same quarter of the previous year. Revenue increased by 6.4% year-on-year to ₹143.24 crore, and the operating profit margin rose to 80.43% from 72.60% . For the fiscal year 2023–24, the company generated ₹8 billion in operating cash flow, with net cash outflows reducing to ₹35 million from ₹468 million in the previous year, indicating improved cash management .
Debt Position
GVKPIL has been actively working to reduce its debt. As of March 2024, the company’s total debt stood at ₹46 billion, down from ₹58.6 billion the previous year. With cash reserves of ₹18.2 billion, the net debt was approximately ₹27.8 billion . However, the debt-to-equity ratio remains high at 269.3%, and the interest coverage ratio is low at 1.2x, indicating ongoing financial strain . The long-term debt-to-total-assets ratio increased to 0.43 in September 2024 from 0.37 the previous year, suggesting a growing reliance on debt financing
Shareholding Pattern
As of December 31, 2024, the shareholding structure of GVKPIL was as follows:
- Promoter and Promoter Group: 54.25%
- Public Shareholding: 45.75%
- Institutional Investors: 0.68% (including Insurance Companies at 0.48%)
- Foreign Portfolio Investors: 0.19%
- General Public and Others: 45.08% The promoter group includes Vertex Projects LLP, holding 46.41%, and individuals such as G.V. Krishna Reddy and G.V. Sanjay Reddy
Insolvency Proceedings
GVK Energy Ltd., a subsidiary of GVKPIL, has been admitted to insolvency proceedings by the National Company Law Tribunal (NCLT) following a petition by IDBI Bank over a debt claim of ₹1,106 crore. GVK Energy served as a guarantor for loans taken by GVK Power (Goindwal Sahib) Ltd., highlighting the financial interdependencies within the GVK Group .
Future Prospects
GVKPIL’s future hinges on its ability to restructure its debt and navigate the insolvency proceedings effectively. While the company has made strides in reducing its debt and improving operational cash flow, the high debt-to-equity ratio and low interest coverage remain concerns. The outcome of the insolvency proceedings and the company’s efforts to stabilize its financial position will be critical in determining its long-term viability.
Share Price Targets:
GVK Power Share Price Target 2025
Based on the above discussion and analysis, the share price of GVK Power & Infrastructure Ltd is likely to touch the level of around Rs.4.50-5.00 in 2025
GVK Power Share Price Target 2030
Based on the above discussion and analysis, the share price of GVK Power & Infrastructure Ltd is likely to touch the level of around Rs.9-10 in 2030
GVK Power Share Price Target 2035
Based on the above discussion and analysis, the share price of GVK Power & Infrastructure Ltd is likely to touch the level of around Rs.20-25 in 2035
GVK Power Share Price Target 2040
Based on the above discussion and analysis, the share price of GVK Power & Infrastructure Ltd is likely to touch the level of around Rs.45-50 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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