Shares of GVK Power & Infrastructure Limited (NSE: GVKPIL), a small cap company that deals in power generation and distributions have delivered exceptional multibagger returns in just one year rising by over 300%.
With a market capitalization of Rs 1,966 crores, GVK Power closed at Rs 12.45 in the last trading session on Friday. The power stock has risen from Rs 3 in March 2023 to ₹12 in the year 2024. The company has now taken support at 11.60 which is the previous breakout level and now rising again, making higher highs since the last three days.
If you had invested Rs 5,000 in GVKPIL a year back it would now be worth over Rs 20,000, which is over 300% returns. In the last 6 months itself, the stock has given 145% return as it continues its bullish run.
In the last quarter, GVK Power has seen a decline in revenues and profits. Net sales remained flat at Rs 2.5 crores in the December 2022 quarter compared to the previous quarter. Net profit also declined from Rs 2.16 crores in September 2022 quarter to Rs 0.45 crores in December 2022 quarter.
Key profitability metrics like return on equity and return on capital employed also moderated in FY22-23 to 4.08% and 5.01% respectively compared to the year ago period.
Promoters hold a 75% stake in the company while FIIs have shown interest recently, increasing their holding to 15.7% as of the latest shareholding pattern.
Incorporated in 2005, GVK Power & Infrastructure Limited is engaged in the business of power generation, transmission and mining. The company has power plants and transmission projects across India. In 2023, we talked about top penny stocks and GVK Power was one of them
GVK Power has been a stellar performer in the last 1 year, rewarding investors with exceptional returns. The uptrend reflects the company’s improving growth prospects despite some moderation in latest quarterly performance. However, if the uptrend continues, it should also be supported by improving fundamentals.
