The shares of this aviation company is in focus after leading brokerage firm, Jefferies, has raised its target price citing it viewpoints on the changing landscape of its business. In this article, we will look more closely at Jefferies’ viewpoint.
With a market capitalization of Rs 91,230 crores, the shares of GMR Airports is currently trading at Rs 86.4 per share, down by 20 percent from its 52-week high of Rs 104 per share. Over the past five years, the stock has delivered an impressive return of 357 percent.
As of March 2025, GQG Partners’ Emerging Markets Equity Fund held a 1.76 percent stake in the company, while Goldman Sachs GQG Partners held a 2.09 percent stake. Together, they hold a total combined stake of 3.85 percent in the company.
Jefferies Rationale
Jefferies has upgraded its target price for GMR Airports from Rs 92 to Rs 100, suggesting a potential upside of 15.5 percent after a solid Q4 performance. The company’s Q4 EBITDA jumped 24 percent year-on-year to Rs 1,010 crore, beating estimates, mainly because of increased passenger traffic, improved non-aero revenue, and gains from land monetization at DIAL. For FY25, EBITDA grew by 27 percent, and FY26 is projected to see over 45 percent growth as GMR finally turns a profit after several challenging years.
Key factors driving this growth include new DIAL tariffs set to take effect in April 2025, the full consolidation of Delhi Duty-Free, and a robust momentum in travel retail. Even with a forecasted increase of Rs 2,400 crore in gross debt for expansion projects, internal accruals are expected to cushion the blow. Jefferies also anticipates further upside from GMR’s enhanced control over duty-free and cargo operations, raising its FY26 EBITDA estimates by 7–9 percent.
The company reported a revenue growth of 19 percent to Rs 10,414 crores in FY25 from Rs 8,755 crores in FY24. However, it reported a net loss of Rs 817 crores in FY25 as compared to a net loss of Rs 828 crores in FY24.
GMR Airports Infrastructure Limited manages a diverse range of airport assets both in India and around the globe. Their portfolio includes major airports in cities like Delhi, Hyderabad, Goa, and Visakhapatnam, as well as international locations such as Cebu, Crete, and Kualanamu. The company offers a variety of services, including secure baggage handling with explosives detection, e-boarding for domestic travelers, integrated terminals, cargo processing and storage, along with catering services for both domestic and international flights.
Written by Satyajeet Mukherjee
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