GR Infraprojects sees roads, railways driving demand

“While the government’s announcement to restart work is a step in the right direction, interactions with stakeholders indicate it will be some time before normalcy returns. In 2021, the execution is expected to decline on account of low awarding in 2020 coupled with Covid outbreak.”

GR Infraprojects Ltd sees roads and railways as the two key focus areas of the government which are expected to see rapid growth in Central government investments in the near term.

“Higher awarding in the current year is expected to bode well for Road sector in near term as government remains focused on its target of completing the 67K kms under Bharatmala Phase 1 and 2 by 2025. Similarly railways is likely to see pickup in investments as government plants to bring DFC routes 3-5 onto the table,” the company, which is hitting the capital market with an Initial Public Issue of shares, said in its prospectus.

Further, with privatisation of routes, government is likely to witness lower losses and better cash flow from the segment enabling higher capex from the sector, the company said.