Smallcap stock jumps 7% after emerging as the lowest bidder for ₹1,739 Cr MCGM flyover project

Synopsis: GPT Infraprojects’ JV has been declared L1 for a Rs. 1,739 crore MCGM flyover project in Mumbai, with GPT’s 26% share worth Rs. 452 crore, strengthening its Rs. 3,591 crore order book and urban infrastructure presence.

This is a construction company engaged in executing civil and infrastructure projects and also manufactures concrete sleepers for railways is now in the spotlight after it is declared as L1 bidder for  Municipal Corporation of Greater Mumbai project.

With market capitalization of Rs. 1,352 cr, the shares of GPT Infraprojects Ltd are currently trading at Rs. 106.20 per share, surging more than 7% in today’s market session, making a high of Rs. 110.75, up from its previous close of Rs. 103.40 per share.

About the contract

GPT Infraprojects Limited has announced that RPS–GPT Joint Venture has been declared L1 (First Lowest bidder) for a major infrastructure project valued at Rs. 1,739.49 crore by the Municipal Corporation of Greater Mumbai (MCGM). 

The project involves the construction of a flyover along LBS Marg, stretching from Kalpana Talkies, Kurla (L Ward) to Pankhe Shah Dargah, Ghatkopar West (N Ward) in Mumbai’s eastern suburbs, aimed at easing traffic congestion in a key urban corridor.

The contract has been awarded under a joint venture structure, with GPT Infraprojects holding a 26% stake, translating into a contract value of approximately Rs. 452.27 crore for the company. Being declared L1 positions the JV favorably for final award of the project, subject to customary approvals and documentation. 

This development strengthens GPT Infraprojects’ order book and reinforces its presence in large-scale urban infrastructure projects, particularly in metro and flyover construction for municipal authorities. As of Q2FY26, the order book stands at Rs. 3,591 cr 

About the company 

GPT Infraprojects Limited is an Indian infrastructure company engaged in the construction of roads, bridges, flyovers, railways, and urban infrastructure projects, along with the manufacturing of concrete sleepers. The company executes projects across India for government bodies and public sector clients, with a strong focus on transportation infrastructure and engineering-led construction solutions.

The company showcases strong financial fundamentals with a ROCE of 21.9% and ROE of 19.6%, supported by a low debt-to-equity ratio of 0.33. The stock trades at a P/E of 14.9, below the industry average of 18.6, indicating reasonable valuation. It has delivered robust profit growth of 40% CAGR over the past five years and continues to maintain a healthy dividend payout of 41.3%.

Sales of the company declined 3% year-on-year to Rs. 279 crore from Rs. 288 crore in Q2FY25. EBITDA rose sharply by 28% to Rs. 39.6 crore compared with Rs. 31.0 crore a year ago. Net profit increased 24% to Rs. 21.5 crore from Rs. 14.8 crore, while EPS also grew 24% to Rs. 1.73 from Rs. 1.40.

Written by Manideep Appana

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