DINESH

GMR Airports

Latest CMP 102
Today's Change ▼ -1.45%
52-Week High / Low 115 | 85
Price Date: 14-Aug-2026
Recommendation Sell
Target Price 64
Expected Upside -20.8%
Forecast Horizon 2 Years
Historical CAGR 8.4%
1,000 Invested 21-Aug-2006
Today's Value 4,993
Investment Period 20 Years

Stock Snapshot

Post Results Return
-4.5%
Mild Negative Re-rating
1-Year Target Price
64
2-Year Target Price
64
52-Week High / Low
115 / 85
20-Day Return
-9.0%
Market Cap (Cr.)
107,184
Current PE
P/BV Ratio
nan
Dividend Yield
Industry PE
20.6

Price Performance

Basis of our Recommendation

GMR Airports is currently navigating a challenging environment characterized by geopolitical disruptions and elevated jet fuel prices, which have led to a downward revision in near-term earnings expectations. Management's focus on tariff hikes and the expansion of high-margin non-aeronautical revenue streams, such as duty-free and real estate, is crucial for maintaining earnings resilience amidst moderating passenger growth. The company is also strategically reducing capital expenditures to facilitate a gradual deleveraging process, targeting a net debt/EBITDA ratio of 4.0-4.5x. Vista's financial outlook reflects these developments, projecting stable margins and a cautious revenue growth trajectory, supported by the operationalization of new airports and regulatory support. However, the current valuation indicates a turnaround phase, with an expected downside of approximately 30%. Over the next 12-24 months, key opportunities include the ramp-up of the Bhogapuram and Nagpur airports and favorable tariff determinations, while headwinds consist of geopolitical uncertainties, competitive pricing pressures, and potential slowdowns in passenger traffic. Overall, GMR Airports' long-term growth prospects remain intact, driven by India's expanding aviation sector and infrastructure momentum

👍 Why We Like This Stock

  • Management's focus on tariff hikes and non-aeronautical revenue expansion is expected to bolster earnings resilience
  • The operationalization of new airports is projected to contribute to traffic growth and improved cash flow visibility
  • Regulatory support, including favorable tariff determinations, is anticipated to enhance revenue potential

Things To Watch Out For

  • Geopolitical disruptions and elevated jet fuel prices are expected to negatively impact near-term earnings and passenger growth
  • Competitive pricing pressures may constrain margin expansion despite stable overall margins
  • Weak cash conversion relative to the asset base poses risks to financial stability and operational flexibility

Key Parameters

Balance Sheet Strength
Weak Cash Conversion
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Strong Buy
Dividend History
No Dividend History
FII Holdings
Increasing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 8,755 10,414 14,807 14,990 17,554
Profit Before Tax (Cr.) -746 -1,233 694 1,863 1,873
PBT Margin -8.5% -11.8% 468.7% 12.4% 10.7%
Net Profit (Cr.) -857 -1,345 559 1,509 910
Earnings Per Share -0.6 -0.9 0.2 0.9 0.9

Analyst Recommendations

Broker Recommendation Target Price Date
BofA ▲ Buy 122 29-May-2026
Citigroup ► Add 105 29-May-2026
Elara Capital ▲ Buy 132 14-Aug-2026
ICICI Securities ► Hold 93 29-May-2026
Jeffries ▲ Buy 125 13-Aug-2026
Kotak Securities ▲ Buy 118 16-Jun-2026
Macguire ▲ Outperform 125 13-Aug-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 125
Coverage 7 Analysts
Analysts' Viewpoint
GMR Airports is leveraging tariff increases and robust non-aero monetization to offset muted passenger growth due to geopolitical tensions and airline capacity constraints. The integration and ramp-up of Bhogapuram and Nagpur airports are expected to drive traffic and EBITDA growth, aiding in the company's deleveraging efforts. Despite high net debt and traffic volatility risks, the outlook remains positive, supported by the aviation sector's long-term growth and improved cash flow visibility.

Company Overview

Show Company Profile

GMR Airports Limited development, maintenance, and operation of airports in India. It is also involved in operation of international airports on build, own, operate, and transfer basis. In addition, the company engages in construction business, including engineering, procurement, and construction contracting activities; and provides security services, as well as engages in maintenance, repairing, and overhauling of aircrafts. The company was formerly known as GMR Airports Infrastructure Limited and changed its name to GMR Airports Limited in September 2024. GMR Airports Limited was incorporated in 1996 and is based in New Delhi, India.