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GMR Infra – Potential Bottom in place ?!?

GMR Infrastructure: Significant reduction in debt and turned profitable in the March quarter.

According to the filing on BSE, gross debt for the company came down to Rs 19,856 crore in FY17 from Rs 37,480 crore last year whereas and net debt to EBITDA ratio for the year improved to 4.3 from 10.2 in FY16
“With significant reduction of gross & net debt and the improvement of debt-to-EBITDA improving more than 100%, GMR has substantially brought down its leverage,” the Delhi-based infrastructure conglomerate said in its filing.
The company declared profit of Rs 9 crore in FY 17 from a loss of Rs 2,664 crore in FY 16.
It also showed a significant improvement in EBITDA, rise of 12% to Rs 3,497 crore for FY17 from Rs 3,114 crore for FY16 following a robust improvement in performance of Airports and Energy Verticals.
GMR said stellar performance of airports sector drove the group’s financials as airport sector profits increased during the year. Its Delhi and Hyderabad Airport declared dividends for the first time.
During the year, the company added Goa Airport to its airport portfolio. It won arbitration award for Maldives Airport and received compensation of Rs 1,800 crore during the year.

Technical Aspect

Chart setup also throwing some positive signals and indicating possible higher levels. Weekly chart attached shows, post series of decline from 37 stock made low of 10.6 levels and then has been moved sideways trading in tight range of 17-10.6 levels. Today’s strong upside surge in price led price again to cross above the range levels indicates change in polarity. RSI seen taking support near 60 levels and moving higher which shows momentum and strength in price. Chart setup shows probable change in trend from sideways to up. Price continues to trade above range price we can expect higher moves towards 22-23 levels (Width of range). Looking at the long term pattern it is visible that stock is forming long rounding pattern and currently price has given breakout from and can expect price to move gradually higher towards its previous peak as pattern suggests. Thus this stock can be kept in radar for long bias for long term basis if price continue to sustain above the range.