🔍 At a Glance

GHV Infra Projects Ltd, once a sleepy shell of nothingness, suddenly clocked ₹185 Cr in FY25 revenue after zero sales for a decade. With a jaw-dropping 17,575% quarterly profit jump and a ₹546 Cr related party order bagged in June, the company now wants shareholders to bless a ₹15,000 Cr cocktail of loans, debentures, warrants, and equity conversions. Stock is up from ₹19 to ₹812 in one year. Suspicious much? Let’s dissect.

🏗️ About the Company

• Name: GHV Infra Projects Ltd (formerly known for not doing anything meaningful for years)
• Sector: Civil Construction & Infrastructure
• Promoter Group: Supported by Bhadra Paper Mills Ltd (yes, paper to pavement transition is apparently a thing now)
• Business Shift:
  • FY25: Amended MoA to enter infrastructure
  • FY25 onwards: Exploring paper manufacturing too
  • Q1 FY25: Revenue went from literal ₹0 to ₹165 Cr
  • Orders: Recently won ₹546 Cr road project from its own related party

🧑‍💼 Key Managerial Personnel (KMP)

• Management Structure: Undisclosed in detail, but key decisions and party deals are heavily influenced by promoter entities
• Promoter Holding:
  • March 2025: 73.98% (up from 3.57% in Dec 2024!)
  • Interpretation: They loaded up right before the boom. Classic.

📊 Financials (FY25)

• Quarterly FY25 Progression:
  • Q3: ₹1 Cr revenue, ₹3 Cr PAT
  • Q4: ₹165 Cr revenue, ₹14 Cr PAT

From zero to hero in two quarters? Either this company discovered black gold or they’re playing 5D chess.

🧮 Fair Value Estimate (EduInvesting Range)

Let’s assume this is a legit infrastructure play now, and assign generous peer-like valuation:

• Infra peer P/E range (L&T, IRCON, NBCC): 25–35
• GHV FY25 EPS: ₹11.90
• Fair Value Range: ₹298 – ₹417

📌 Current CMP: ₹812
❗ Conclusion: Already 2x to 3x overvalued vs. generous fair value. Hope you’re not the last one in the musical chairs game.

📈 Order Book & Related Party Rodeo

• Order Win (June 2025): ₹546 Cr road project via related party
• Execution Period: 24 months
• Auditor red flag? We’ll get to that.

🧾 Upcoming EGM Bombshells (June 28, 2025):

• Approval for:
  • ₹15,000 Cr worth of related party transactions
  • ₹1,000 Cr in loans
  • ₹160 Cr debenture issue
  • ₹400 Cr warrants
  • Loan-to-equity conversion

💥 Translation: “We just got started. Now, let’s legally milk this thing.”

💰 Balance Sheet Breakdown

• Liabilities up from ₹0 to ₹221 Cr.
• No fixed assets to match infra claims.
• Still no CAPEX data or project-wise breakdown.

This is like launching a pizza chain without ovens and still reporting ₹185 Cr in sales.

🧾 Red Flags & “Coincidences”

1. Revenue shows up only after MoA amendment + promoter stake surge
2. CMP is 27x book value (insane even for startups)
3. Debt jumps from 0 to ₹31 Cr
4. Cash from operations: -₹56 Cr
5. Debtor Days: 264 (aka, they’re not even collecting the money fast)
6. Related Party Fireworks: ₹546 Cr order from group company + ₹15,000 Cr EGM approval = 🚨

🔍 Peer Comparison (For Fun)

Conclusion: Valuation math doesn’t hold. You can’t price a peanut at truffle rates.

🧠 EduInvesting Take

This is either the fastest infrastructure miracle in Indian history… or a well-disguised asset-light circus ready for IPO 2.0 drama.

The numbers don’t add up. Revenue shows up after a decade of dormancy, margins appear out of thin air, related party deals run into four digits of crores, and the promoter stake mysteriously spikes before it all begins.

Verdict:
This stock is running on hype, hope, and Hail Marys.
Buyers beware: the infra might be real, but so is the infra-dump.

📌 Tags: GHV Infra, Infra stocks India, multibagger or scam, related party deals, stock market red flags, EduInvesting

✍️ Author: Prashant Marathe
📅 Date: 13 June 2025