Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy call on GMR Infra with a short term target of Rs 205 in its June 10, 2009 research report.

In its latest research report, the firm said that Idea Cellular is clearly a buy, so investors can accumulate GMR Infra on declines. 

In addition, the firm has suggested a support level for the scrip at Rs 150.

The stock is presently trading around Rs 160-167 level.

Today, the scrip of the company opened at Rs 168.95 on BSE, marginally up compared to its previous close of Rs 165.90 on Tuesday (June 09). Current EPS & P/E ratio stood at 0.54 and 307.78 respectively. The share price has seen a 52-week high of Rs 183.50 and a low of Rs 45.60 on BSE.

GMR Infrastructure has registered a marginal growth of 6.44% during the consolidated net profit from ordinary activities after tax for the three month period ended March 31, 2009.

During the period under review, the company’s profit stood at Rs 532.40 million as against Rs 500.20 million during March 31, 2008.

In the same period, the company’s total income stood at Rs 13270.70 million, an increase of 46.61% over the prior year period.

The company said that its standalone net profit for the quarter ended March 31, 2009 fell substantially. 

The company’s profit dropped 75.05% to Rs 93.20 million as against Rs 373.60 million in the same quarter previous year.

Net sales during the same period fell 58.72% to Rs 256 million, whereas total income for the quarter dropped 55.21% to Rs 288.60 million.

The company posted earnings of Rs 0.05 per share during the quarter, posting 76.19% decline over prior year period.

During the quarter, the operating margin of the company also fell to 53.69%. 

Interest cost during the period declined 17.52% to Rs 56.50 million whereas depreciation cost remained stable at Rs 0.30 million over previous year period.