GMR Power Stock Surges 313% in a Year—Should You Invest Now?

GMR Power and Urban Infra has seen a massive jump in its stock price, rising by 313% in the past year. In 2024 alone, the stock has gone up by almost 190%, delivering gains in seven out of nine months.

In September, the stock increased by 18%, marking its sixth straight month of growth. It saw a 41% rise in August, 17% in July, 27% in June, 3% in May, and 49% in April. Earlier in the year, the stock was more volatile, falling 18% in March, rising 2% in February, and dropping 9% in January.

The stock hit a record high of ₹163.70 on September 24, and has surged 451% from its 52-week low of ₹29.71 recorded in October last year.

With these impressive gains, the big question is whether the stock will continue to rise. Here’s what experts say about its future.

Technical Outlook:

• Om Mehra, SAMCO Securities: GMR Power is currently trading near its all-time high and showing strong momentum. It’s above key moving averages, which signals continued strength. The stock might see a short-term pullback as it’s in an overbought zone, but as long as it stays above ₹148, the trend remains positive. There’s a potential for it to hit ₹180-185 by the end of the year.
• Rajesh Palviya, Axis Securities: The stock is in a strong uptrend, consistently forming higher highs. It’s broken out of a consolidation phase, indicating the rally could continue. The stock is trading above key moving averages, and indicators like the RSI and Bollinger Bands show strength. Investors are advised to hold the stock, with an upside target of ₹178-195 and support around ₹150-135.

Fundamental View:

Emkay Global has given GMR Power a ‘Buy’ rating, with a target price of ₹180 and a potential high of ₹205. The company’s improving debt situation and strong performance of its thermal power plants are positive signs. Its hydro-power project is stable, and a new smart meter installation contract with Bosch presents a profitable business opportunity. Emkay values GMR Power’s assets and future contracts as strong growth drivers, which could add further value to the stock.