🟨 At a Glance
GPT Infraprojects Ltd isn’t your average infra player. While L&T builds airports and IRB collects tolls, GPT quietly mints profits by manufacturing railway sleepers and executing rail+bridge projects across India. With a ₹1,628 Cr market cap, 42% 5Y profit CAGR, 22% ROCE, and a 47% dividend payout — it might just be the smallest profitable infra stock you’ve never paid attention to.
1. 🪝 Introduction: Can Sleeper Stocks Wake Up?
If infrastructure is the spine of a growing economy, GPT Infraprojects is the chiropractor — aligning railway bridges, metro contracts, and concrete sleepers so that everything runs smoothly.
Yet here’s the irony: despite growing faster than many large infra peers, GPT trades at a P/E of just 22. And nobody’s really talking about it.
- 5Y Revenue Growth: ✅ ₹675 Cr → ₹1,188 Cr (76% growth)
- 5Y PAT Growth: ✅ ₹23 Cr → ₹74 Cr (3.2x)
- Debt Reduction: ✅ ₹262 Cr → ₹129 Cr
- Order Book: ✅ ₹3,486 Cr (nearly 3x FY25 revenue)
So what’s the catch? Let’s break it down.
2. 🧱 WTF Do They Even Do?
GPT’s business can be split into 2 concrete (heh) segments:
🏗️ Infra Projects (95% of revenue in 9M FY25)
- Railway bridges, metro corridors, highways, riverine bridges, airport pavements
- Clients: Railways, NHAI, Metro authorities
- Execution-led revenue model — L1 game, but profitable when managed tightly
🛏️ Concrete Sleeper Manufacturing
- Manufactures and supplies concrete sleepers for Indian Railways
- Used for track laying and renewals
- Also has export presence in Africa (Mozambique, Ghana)
Fun Fact: Sleeper manufacturing gives GPT annuity-like cash flows in a capex-heavy infra biz — think of it as infra’s version of passive income.
3. 💰 Financials Overview – Profits, Margins, ROE, Growth
| Metric | FY20 | FY23 | FY25 |
|---|---|---|---|
| Revenue | ₹618 Cr | ₹809 Cr | ₹1,188 Cr |
| PAT | ₹13 Cr | ₹30 Cr | ₹74 Cr |
| OPM | 13% | 11% | 11% |
| ROCE | 13% | 14% | 22% |
| ROE | 13% | 14% | 18% |
📈 EPS Growth: From ₹1.29 (FY20) → ₹6.34 (FY25). That’s not growth — that’s compounding on creatine.
💸 Dividend payout: 47% in FY25 — surprisingly generous for a smallcap infra firm.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
| Valuation Metric | GPT | L&T | NBCC | IRCON |
|---|---|---|---|---|
| P/E | 22x | 33x | 55x | 26x |
| ROCE | 22% | 14% | 33% | 12% |
| Dividend Yield | 2.3% | 0.9% | 0.4% | 1.5% |
So you’re telling me GPT has better margins, less debt, and higher returns — but trades at a discount P/E?
Yes. That’s exactly what we’re telling you. Welcome to the sleeper stock paradox.
🧮 EduFair™ Value Range:
- Base Case (15x P/E on FY25 EPS ₹6.34) → ₹95 (already crossed)
- Optimistic Case (25x) → ₹158
- Aggressive Infra Rerating (30x) → ₹190
🎯 Fair Value Range: ₹158–₹190
5. 🔍 What’s Cooking – News, Triggers, Drama
- 💰 ₹175 Cr QIP Raised in FY25 — now fully funded for scale-up
- 🚧 Order Book ₹3,486 Cr — 2.9x revenue visibility
- 🇿🇲 Exports to Africa — sleeper biz is going global
- 🏗️ Metro + Rail Capex Boom in India → multi-year visibility
🧨 Trigger Alert: GPT has never really rerated. A move into ₹200–₹300 Cr PAT zone could catapult it into institutional radar.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
- FY20 Debt: ₹240 Cr → FY25 Debt: ₹129 Cr
- D/E has fallen from 1.1x to ~0.3x
- Reserves have ballooned from ₹196 Cr → ₹397 Cr
- Working capital is tight but improving — debtor days at 29, inventory rationalized
GPT cleaned its house before asking guests (investors) to come in.
7. 💸 Cash Flow – Sab Number Game Hai
- 🟢 Cash from Ops: Positive every year since FY20
- FY25 CFO: ₹29 Cr (low vs PAT due to WC spike and project execution)
- ❌ Capex not aggressive — mostly project-linked
- ✅ Low chance of equity dilution (just did QIP)
GPT knows the golden rule of infra: “Cash flow is king. PAT is PR.”
8. 📊 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 22% |
| ROE | 18% |
| OPM | 11% |
| Debt/Equity | 0.32x |
| Interest Coverage | 5.4x |
📌 Only red flag? Promoter pledge at 50.9% — uncomfortable, but has reduced over years. Still worth tracking.
9. 💥 P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY20 | 618 | 13 | ₹1.29 |
| FY21 | 609 | 20 | ₹1.74 |
| FY22 | 675 | 23 | ₹2.09 |
| FY23 | 809 | 30 | ₹2.70 |
| FY24 | 1,018 | 56 | ₹4.97 |
| FY25 | 1,188 | 74 | ₹6.34 |
If this was a Netflix arc, GPT is mid-season in its redemption arc — not flashy, but consistent AF.
10. 🎭 Miscellaneous – Shareholding, Promoters
- 👨👩👧👦 Promoter Holding: 69.2% (down from 75%, post QIP)
- 🚨 Pledge: 50.9% of promoter shares
- 📊 FIIs + DIIs: Up from 2% → 11% in 2 years
- 🧍♂️ Public Holding: 19.7% across 37,000+ investors
🧠 EduInvesting Verdict™
GPT Infraprojects is not an “infra theme” stock. It’s a well-run, profitable smallcap that’s quietly compounded EPS and ROE for a decade. While it’s not debt-free or glamorous, it’s definitely undervalued relative to peers like IRCON, NBCC, and RVNL.
If infra allocation in your portfolio is 0%, maybe it’s time to wake up… to this sleeper.
✍️ Written by Prashant | 📅 27 June 2025
Tags: GPT Infraprojects, Infra Stocks, Sleeper Manufacturing, Railway Capex, Infra Multibagger, EduInvesting
