Commentary around GMR Airports’ prospects has been positive over the last two days. The stock on Tuesday is also reacting to its business update for the month of May.
Why Did Kotak Raise Its Price Target On GMR Airports?
Brokerage firm Kotak Institutional Equities has maintained its “buy” recommendation on the stock with a price target of ₹118 apiece from ₹110 earlier, indicating an upside of 10.6% from its previous close.
It said the comparison of Adani Airports and GMR Airports suggests that there are material leakages on non-aero opportunities for GMR to eventually capture.
AAHL’s ramp up in non-aero has been supported by key acquisitions and entry into new lines of work, highlighting monetisation opportunities that remain underexploited by GMR, it stated.
Such an upside to GMR’s non-aero per passenger may eventually get captured as:
- Venturing into new lines (retail, car rentals)
- Scale up existing businesses (F&B) and potential acquisitions by GMR enhance its portfolio over time, the brokerage stated.
Why Is Macquarie Bullish On GMR Airports?
On Monday, brokerage firm Macquarie initiated coverage with an “outperform” rating on GMR Airports with a price target of ₹125 per share, indicating an upside of 17.2% from its previous close.
It said GMR’s India gateway airports are embedded with premium travel consumption. The captive passenger ecosystems drive passenger spends through retail, duty free.
Its large landbank offers upside through commercial development and ecosystem expansion, the brokerage said.
It sees an 18% EBITDA compound annual growth rate over FY26-29.
Jefferies Among Highest Targets
Jefferies also has a “buy” rating with a price target of ₹125 apiece on GMR Airports.
It listed takeaways from meeting the company’s management:
- Three engines – aero (regulated returns), non-aero (now larger driver) and real-estate are the key growth drivers
- Delhi’s ambitions with rising transfer traffic, mid teens non-aero growth and asset light consumer platform strategy were highlighted.
- With capex moderating, free cash flow turning positive and leverage falling, balance sheet is seeing inflection with land monetisation highlighted as another key upside lever, it stated.
May business update
GMR Airports reported its business update for May, where its total airport passenger traffic increased by 6.1% in May from the previous year, while domestic traffic was up 7.9%.
International traffic last month was marginally up 0.4% from the previous year, due to temporary disruptions in flight operations, caused by shifting airspace conditions amid continuing geopolitical tensions.
The total passengers have crossed 20.5 million in the financial year 2027, so far, the highest-ever total passenger traffic with record domestic flyers at 15.8 million. The same was mainly driven by domestic traffic growth at Delhi Airport. Delhi traffic accounts for 68% of the total traffic.
A total of seven analysts have coverage on GMR Airports. Of them, seven have “buy” recommendations while one has a “hold” rating.
Shares of GMR Airports gained 3.6% on Tuesday to hit an intraday high of ₹110.5 apiece. The stock has given up most of those gains to now trade 0.9% higher at ₹107.55. The stock is up 13% in the last one month and as a result as also turned positive for the year.
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