Should I Buy GVK Power Stock in 2025? Full Indian Market Analysis

What is GVK Power?

How much is GVK Power stock?

The price of GVK Power stock is rising this week. As of now, the stock trades at ₹3.72, showing a gain of 1.92% over the past 24 hours and an impressive 9.73% increase for the week.

GVK Power’s market capitalization stands at approximately ₹578 crore, with a three-month average daily volume around 777,100 shares.

A low P/E ratio and a beta of 0.46 indicate lower volatility compared to the broader market. However, the dividend yield remains at 0.00%.

Important information

Investors should note that while short-term momentum is positive, underlying financial challenges and insolvency proceedings add an extra layer of risk.

Our full analysis on GVK Power stock

Having revisited the latest financial statements of GVK Power & Infrastructure Ltd (GVKPIL), alongside a meticulous review of its market performance over the past three years, we have synthesized proprietary insights using a multi-factor approach—blending quantitative financial metrics, technical signals, peer-relative analysis, and prevailing industry dynamics. This comprehensive reconnaissance enables us to cast a forward-looking spotlight on the stock’s evolving momentum amid India’s rapidly transforming power and infrastructure sector. So, why might GVK Power once again represent a strategic entry point for discerning investors seeking exposure to the infrastructure and power renaissance in 2025?

Recent Performance and Market Context

GVK Power’s share price is currently trading at ₹3.72 (as of May 19, 2025), having notched a daily gain of 1.92%. Notably, while the current price sits 68.69% below its 52-week high of ₹11.88, investor sentiment has shifted positively in the short term:

• The stock has gained 10.06% over the last month and 9.73% in the past week—outpacing many sector peers.
• This rebound is taking shape against a backdrop of robust policy impetus for Indian infrastructure and the government’s continued focus on ensuring sustainable power availability.
• The recent uptick in the BSE Power index (driven by renewed investor confidence) has provided a supportive macro tailwind, especially as institutional investors turn their gaze toward turnaround stories in India’s energy sector.
• The official notification of the board meeting slated for May 30, 2025, to approve FY25 results, is further stoking anticipation for potential positive disclosures or strategic realignments.

Despite ongoing sectoral challenges, the Power and Infrastructure space is benefiting from the government’s focus on:

• Renewed capital expenditure (capex) allocations,
• Initiatives around clean energy transition,
• New public-private partnership frameworks,
• Strategic resolution of legacy debts in loss-making entities.

This positive macro context is swelling investor interest in value-driven turnaround stocks like GVK Power.

Technical Analysis

Momentum, Structure, and Support

GVK Power’s technical landscape currently reflects the emergence of bullish sentiment in the short run:

• Momentum Indicators: RSI (14) stands at 60.03—comfortably above the neutral line but not into overbought territory, signifying ample room for further upward movement. The MACD has crossed above its signal line, implying that the stock may have initiated a fresh bullish phase.
• Moving Averages: The current price sits convincingly above the 5/10/20/50-day simple and exponential moving averages (SMA/EMA), underscoring a positive inflection in the short term. This confluence of moving averages typically signals an accumulation phase by smart money.
• Support and Resistance: Immediate support is observed at ₹3.70, with layered resistances just above the current price, at ₹3.73–₹3.76. The relatively tight spread between these levels hints at a classic consolidation-before-breakout structure.
• Volume Expansion: Trading volumes have exceeded historical averages in recent sessions, confirming the credence of the upward price moves and validating the technical signals.

While the medium- and long-term structure remains cautious (with the stock below its 100/200-day moving averages), the progression of short-term signals points to a likely period of mean reversion or even the start of a new medium-term uptrend.

Fundamental Analysis

Valuation and Structural Strengths

Despite legacy challenges, several factors make GVK Power’s fundamental profile notably attractive at current valuation levels:

• Compelling Valuation: A price-to-earnings (P/E) ratio of 0.91 on a consolidated basis means the market is pricing the company well below its recent earnings power—unusual for a sector with this level of growth potential. The share is also trading at a price-to-book value just below 1 (0.97), effectively reflecting the value of tangible assets and offering intrinsic downside protection.
• Revenue and Profit Margin: Q3 FY2024-25 revenues have shown a 4.26% year-on-year increase, with a robust operating margin (71.71% for FY2023-24) underpinning the core operations. This resilience in operating profitability, despite a volatile macro landscape and a scale-down in headline revenues, highlights careful cost management and focused value delivery.
• Strategic Growth Opportunities: GVK Power’s expertise spans energy solutions (across gas/naphtha, thermal, and hydro), supported by its service provider role for power plant and infrastructure owners nationwide. The company’s flexibility and asset-light offerings in O&M (operation and maintenance), consultancy, and manpower deliver scalable revenues and reduce capex risks.
• Management and Shareholding: With unchanged promoter shareholding at 54.25% and a high proportion of public shareholders, the corporate governance framework and alignment of interests appear robust.

While current net profit and ROE metrics are under pressure (with negative ROE for the third consecutive year), the low beta (0.46) points to the stock's defensive qualities—compelling for those seeking exposure to mean-reverting deep value plays.

Volume and Liquidity

Market Confidence and Dynamic Valuation

Sustained high trading volume (777,100 shares across NSE and BSE) is particularly noteworthy at this price level:

• Heavy rotation in the float often accompanies periods of market reassessment—hinting at growing confidence and the potential for dynamic re-rating.
• With public shareholding at 45.20%, GVK Power’s shares remain liquid and accessible, fostering the right conditions for periodic valuation “catch-ups” in line with sector developments.
• A relatively low float compared to market capitalization facilitates nimble price discovery, frequently resulting in outsized moves on the back of improved news or technical breakouts.

These liquidity dynamics suggest the stock is poised for further activity-driven price upside in the near term.

Catalysts and Positive Outlook

Forthcoming Triggers for Re-rating

Several near- and medium-term catalysts present clear opportunities for value realization:

• FY25 Results and Strategic Announcements: The imminent board meeting (May 30, 2025) may deliver actionable clarity on restructuring, new partnerships, or progress on legacy asset monetization—each a potential positive surprise.
• Insolvency Process Resolution: The ongoing Corporate Insolvency Resolution Process for the GVK Energy subsidiary, while currently a point of concern, actually opens the door for balance sheet realignment, debt write-downs, or strategic asset sales that could substantially de-risk the group.
• Government Policy Tailwinds: Ongoing reforms in the energy sector, especially in project resolution and fresh capex initiatives, position GVK Power favorably given its proven track record in efficient asset management and O&M services.
• Potential for Renewed Asset Turnaround: As government and private capital seek experienced infrastructure managers for new and brownfield projects (especially in India’s next wave of power and clean energy investment), GVK Power is well-placed to scale operations, leveraging its domain expertise.
• ESG Upgrades: GVK’s incremental participation in hydro and clean energy initiatives affords the group a credible platform to benefit from the intensifying ESG investment flows—an increasingly important driver for valuation re-rating in the sector.

Collectively, these triggers suggest that GVK Power stands on the cusp of benefitting from both internal restructuring and sectoral uplift.

Investment Strategies

Optimal Approaches for Entry

GVK Power’s current technical and fundamental setup presents multiple entry points to suit a range of investor horizons:

• Short-term Positioning:
• With the stock trading above its critical short-term moving averages and momentum oscillators aligning, tactical entries around ₹3.70–₹3.72 (with tight stops just below established support) appear well-timed for those seeking a pre-catalyst rally around the board meeting and potential newsflow from insolvency resolution.
• The immediate resistance band at ₹3.73–₹3.76 may act as a breakout trigger, with momentum strategies targeting short bursts of volatility-fueled appreciation.
• Medium-term Horizon:
• For investors with a 3–6 month view, the ongoing mean reversion process—supported by positive sectoral momentum, increase in trading volumes, and new avenues for policy-driven capex—suggests that any consolidation near current levels could prove to be an attractive staging ground for participation in a wider sector up-cycle.
• Watching for confirmation from FY25 results or any statement on debt restructuring can further inform conviction.
• Long-term Perspective:
• At current valuations (P/E below 1, Price to Book below 1), GVK Power offers significant asymmetry: downside appears mitigated by asset values, while upside could be substantial if the group executes on operational turnaround and capital deployment in new initiatives.
• As sector reforms crystalize and the company executes on strategic re-alignment, patient investors could witness sustained re-rating multiples over the next 12–24 months.

In sum, GVK Power is uniquely positioned at a technical and fundamental inflection, offering multi-horizon strategies depending on individual risk appetite.

Is it the Right Time to Buy GVK Power?

Summing up, several factors—technical momentum, attractive valuations, resilient operating margins, rising trading volumes, and clear forward catalysts—suggest that GVK Power represents a compelling opportunity at current levels. The stock’s present phase appears to mark the confluence of value and momentum, underpinned by sectoral tailwinds and the potential for multiple re-rating triggers ahead.

While due diligence on legacy risks is always prudent, the blend of low relative valuation, improved short-term structure, and upcoming strategic developments means GVK Power may be entering a notable new bullish phase for investors focused on India’s infrastructure and power renaissance.

In the context of the evolving Indian market, and with sector-wide reforms accelerating, GVK Power & Infrastructure Ltd seems to represent an excellent opportunity for those seeking value and recovery potential in a high-stakes, high-upside environment—making it a stock worthy of close consideration at this juncture.

How to buy GVK Power stock in IN?

Buying GVK Power & Infrastructure Ltd (GVKPIL) shares online is both simple and secure when using a regulated stockbroker in India. Investors today can choose between two main methods: buying shares outright on the stock exchange (spot buying), or speculating on price movements via Contracts for Difference (CFDs). Both methods are accessible through leading online broker platforms, each offering its own advantages in terms of risk and potential reward. Below, you’ll find a detailed comparison of these methods to help you decide which best suits your investment goals, and a broker comparison tool is available further down the page.

Spot Buying

Spot buying means purchasing GVK Power shares directly on a regulated market like the NSE or BSE. This traditional method gives you ownership of actual shares in your demat account and voting rights as a shareholder. Brokers typically charge a flat commission per order, often ranging from ₹20 to ₹30, or a small percentage (0.05 to 0.5%) of the transaction amount.

Example

Example: Suppose the GVK Power share price is ₹3.72 and you invest ₹1,000 (excluding brokerage charges). You could buy approximately 268 shares (₹1,000 ÷ ₹3.72 = 268.8) after factoring in a ₹40 (about $5) total broking and statutory fee.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth ₹1,100.
Result: ₹100 gross gain, or +10% on your investment (before taxes and charges).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on the price movement of GVK Power shares without owning them. With CFDs, you can use leverage—meaning you can open a position larger than your initial deposit. CFD trading involves costs such as the spread (the difference between buy and sell price) and, if you hold your position overnight, daily financing fees.

Example

Example: If you put up $1,000 (roughly ₹83,000) with 5x leverage, you control $5,000 (₹415,000) in GVK Power exposure.
✔️ Gain scenario: If GVK Power’s share price rises by 8%, your leveraged position earns 8% × 5 = 40%.
Result: That’s +$400 (approximately ₹33,200) on your $1,000 stake—excluding fees.

Final Advice

Before making your decision, carefully compare the fees, features and terms offered by each broker to find the solution that best fits your financial profile. Whether you prefer the long-term stability and shareholder rights of holding real GVK Power shares, or the flexibility and higher risk/reward of CFDs, your choice should be guided by your objectives and risk tolerance. You’ll find a comprehensive broker comparison tool further down this page to help you get started securely and at the best price.

Our 7 tips for buying GVK Power stock

The latest news about GVK Power

GVK Power stock has surged 9.73% in the past week, signaling renewed short-term investor interest. This upward momentum is reinforced by a 10.06% gain over the past month and recent volume exceeding the average, with 777,100 shares traded across NSE and BSE on May 19, 2025. Technical indicators collectively point towards a mild short-term bullish phase: the current price of ₹3.72 sits above all major short-term moving averages (5, 10, 20, and 50-day SMAs and EMAs), with RSI at 60.03, above midline but comfortably below overbought territory. The MACD shows a positive crossover, and the stochastic oscillator is at 55.17, consolidating the signal of revived momentum after a period of protracted weakness.

Short-term technical recovery is contrasted by a medium-to-long-term bearish trend, reflecting unresolved structural challenges. The current share price is still nearly 69% below its 52-week high of ₹11.88, and remains below both the 100-day and 200-day moving averages. Over the past year, the stock has lost more than two-thirds of its value, underscoring persistent concerns about the company’s financial fundamentals and market perception. The longer-term view suggests caution is warranted, but the near-term rebound offers some relief to ongoing shareholders and signals potential speculative opportunities for traders focused on technical signals.

The company’s financial position shows resilience in operating performance amid sector headwinds and ongoing restructuring efforts. Although annual revenues for FY 2023-24 dropped sharply by 46.99% year-over-year, GVK Power maintained a strong operating profit margin of 71.71%, indicating efficient core operations even as net results were dragged down by high non-operating costs and exceptional items. Notably, total income in Q3 FY2024-25 grew by 4.26% on a year-over-year basis. The low price-to-book ratio (0.97) and very low P/E (0.91) suggest that the stock may be undervalued relative to its asset base, especially if operational stabilization continues.

Ownership stability is emphasized by consistent promoter holdings and rising public participation in the first quarter of 2025. The shareholding pattern as of March 2025 shows promoters retaining a robust 54.25% stake, unchanged from the previous quarter, indicating continued long-term commitment. The public shareholding has inched up to 45.20%, its highest level in the past two quarters, reflecting a slight increase in retail and broader market interest amidst improving technical signals. Institutional investor exposure remains limited but stable, suggesting scope for further interest if operational or financial catalysts emerge.

The scheduled board meeting on May 30, 2025, to approve FY25 results may serve as a critical inflection point for stock direction. The announcement of this meeting signals progress on the company’s roadmap to address recent financial challenges, including the insolvency proceeding of subsidiary GVK Energy. The board meeting’s outcomes are expected to provide greater clarity on the company’s ability to manage risks, restructure its operations, and unlock shareholder value, all of which are essential for restoring long-term market confidence within India’s infrastructure and power sector.

FAQ

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.