GPT Infraprojects Shares Rally on Major Mumbai Contract Win
Shares of infrastructure firm GPT Infraprojects witnessed a sharp upswing, climbing 13.5% during Friday's trading session on December 19. The stock reached a two-month peak of ₹121.40 per share, driven by investor optimism following a significant new order announcement.
Details of the Major Mumbai Flyover Project
The surge came after the company disclosed in a post-market filing on Thursday that it secured a substantial contract from the Municipal Corporation of Greater Mumbai (MCGM). The order, valued at ₹469.16 crore, involves the construction of a flyover along LBS Marg. This crucial infrastructure link will connect Kalpana Talkies in Kurla (L Ward) to Pankhe Shah Dargah in Ghatkopar West (N Ward), located in Mumbai's Eastern Suburbs.
The company will execute this project as part of a joint venture, holding a 26% share in the total contract. The overall project cost is a massive ₹1,804.48 crore, with GPT's portion amounting to the disclosed ₹469.16 crore. The company has been allotted 36 months to complete the construction.
A Series of Order Wins Boosts Pipeline
This Mumbai flyover contract is not an isolated win for GPT Infraprojects. The company recently bagged another order worth ₹53.6 crore from PCMM, South Eastern Railway. This contract is for the supply of concrete sleepers from its factory in Panagarh, West Bengal.
Furthermore, on December 09, the company was declared the L1 (lowest) bidder for a project valued at ₹199.17 crore by the North Eastern Railway construction project. These consecutive wins significantly strengthen the company's order book and revenue visibility.
GPT Infraprojects operates through two main segments:
- Infrastructure: Focuses on executing civil and infrastructure projects, especially large bridges and Road Over Bridges (ROBs) for railways and roads under government contracts.
- Sleeper: Manufactures and supplies concrete sleepers for railways in India and Africa.
Stock Performance: A Tale of Two Timeframes
Despite the recent order influx, the stock's performance in 2025 has been subdued, reflecting the broader weak market sentiment. From its peak of ₹149.80 per share in May, the stock has corrected by approximately 25%. This decline has contributed to a 20% drop in 2025 so far, positioning it for its first annual decline since 2019, when it fell 27%.
However, the long-term perspective paints a vastly different picture. Over a three-year horizon, the stock is still trading an impressive 303% higher. Zooming out to a five-year period reveals a staggering rally of 1110%, cementing its status as a significant wealth creator for long-term investors, despite the recent sharp correction.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.
