Shares of GMR Airports Infrastructure Limited went up by 5% to Rs 90 on May 27, ending a two-day losing streak. This rise came after Jefferies began covering the stock with a ‘buy’ rating, highlighting strong growth prospects.
Jefferies set a price target of Rs 100, indicating a potential 15% increase from the last close of Rs 86 on the National Stock Exchange (NSE).
Analysts at Jefferies believe the company will benefit from strong growth in air traffic, opportunities in travel retail, higher aero tariffs, and real estate development.
Jefferies also noted that GMR Airports’ growth is shifting from being seen as a utility to more of a retail consumption business. The company’s efforts to simplify its corporate structure, improve debt ratios, and support from Aéroports de Paris (ADP) are expected to help re-rate the stock. ADP owns a 49% stake in GMR Airports.
GMR Airports is involved in developing, operating, and maintaining airports, and providing integrated security solutions. Their portfolio includes three operational airports: Delhi International Airport and Hyderabad International Airport in India, and Mactan-Cebu International Airport in the Philippines.
Around 9:20 am, GMR Airports’ shares were trading at Rs 89, up 2.4% from the previous close on the NSE. However, the shares have fallen by 2% over the last three months.
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