GMR Power and Urban Infra — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Power generation industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Power generation · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
GMR Power and Urban Infra GMRP&UI · you	₹6,079 Cr	13.7×	4.4×	4.9×	31.5%	8.2%	10.0%
Sector median	—	18.0×	1.0×	11.1×	6.9%	5.8%	2.8%
CESC CESC	₹23,125 Cr	15.0×	1.9×	8.8×	12.3%	8.3%	9.2%
Nava NAVA	₹16,829 Cr	21.1×	1.9×	11.1×	9.0%	18.3%	6.7%
Jaiprakash Power Ventures JPPOWER	₹12,741 Cr	37.8×	1.0×	11.4×	3.5%	8.1%	-1.3%
Reliance Power RPOWER	₹7,464 Cr	—	0.7×	6.2×	-2.1%	-4.4%	0.5%
PTC India Limited PTC	₹4,668 Cr	8.1×	0.8×	-0.0×	10.1%	3.6%	2.3%
RattanIndia Power Limited RTNPOWER	₹4,538 Cr	42.3×	1.0×	—	2.3%	0.1%	—
Ujaas Energy Limited UEL	₹3,204 Cr	828.1×	39.4×	—	4.8%	1.1%	—
Gujarat Industries Power Company Limited GIPCL	₹3,115 Cr	6.8×	0.7×	11.3×	9.6%	27.0%	3.2%

Peer comparison verdict

GMR looks attractively valued — trading at a discount to sector peers on P/E (13.7× vs sector median 18.0×) while delivering above-average returns on equity (31.5% vs 6.9%).

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

25% weight · 6 peers

Sector median PE18.0×

Fair value via PE₹133

25% weight · 7 peers

Sector median PB1.0×

Fair value via PB₹22

EV/EBITDA

50% weight · 5 peers

Sector median EV/EBITDA11.1×

Fair value via EV/EBITDA₹227

Blended peer fair value₹152

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.