Latest news with #GMRAirports
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Business Standard
6 days ago
- Business
- Business Standard
GMR Airports hits 9-month high, regains ₹1 trillion market cap. Do you own?
GMR Airports share price today Shares of GMR Airports hit a nine-month high of ₹95.38, gaining 2 per cent on the BSE in Thursday's intra-day trade in an otherwise subdued market. The stock price of GMR Group Company was quoting higher for the fourth straight day, surging 5 per cent during the period. It was trading at its highest level since September 2024. In the past one month, GMR Airports has outperformed the market by surging 15 per cent, as compared to 1.1 per cent rise in the BSE Sensex. The stock had hit a 52-week high of ₹103.70 on July 31, 2024. A sharp rally in the stock price has seen GMR Airports regain market capitalisation of ₹1 trillion today. At 10:06 AM: with ₹100,511 crore (₹1.0 trillion) market capitalisation GMR Airports was trading 1.4 per cent higher at ₹95.19. In comparison, the BSE Sensex was down 0.11 per cent at 82,547. CARE Ratings - rating rationale On June 26, 2025, CARE Ratings upgraded its ratings from 'CARE BBB+; Stable/CARE (Triple B Plus); Outlook: Stable/Care A2' to 'CARE A; Outlook: Stable / CARE A1' for the long-term / short-term bank facilities already availed by the GMR Airports. The upgrade in ratings assigned to debt instruments and bank facilities of GMR Airports factors in full and final settlement of liabilities of GMR Rajahmundry Energy leading to elimination of potential risk related any future recourse to GMR Airports. The rating revision also factors in expected expansion of profit before interest, lease rentals, depreciation, and tax (PBILDT) with slated takeover of duty-free concessions of Delhi International Airport (DIAL) and GMR Hyderabad International Airport (GHIAL) likely from July 2025 and August 2025 onwards, respectively, and significant dividend inflow from GHIAL in line with dividend received in FY25. This is expected to improve interest coverage ratio of GMR Airports significantly compared to below unity interest coverage in the past, CARE Ratings said in its rating rationale. GMR Airports derives healthy financial flexibility being a listed holding company of two major operating Indian airports, DIAL and GHIAL. Both airports are among busiest airports in India. Ratings continue to factor favourable outlook of air passenger traffic in India, GMR Airports' strategic partnership with Aeroports De Paris (Groupe ADP), and demonstrated track record of funds raised in the past several years to meet refinancing and/or capital expenditure (capex) requirements, the rating agency said. Favourable outlook for airports business CareEdge Ratings projects a robust 9 per cent compounded annual growth rate (CAGR) in air passenger traffic over FY25- FY27, with international traffic growth expected to outpace domestic growth. This surge is driven by strong air travel demand and additional capacity creation by both airports and airlines. By FY27, passenger traffic is anticipated to reach ~485 million, reflecting the sector's strong recovery and growth trajectory. However, the sector is exposed to inherent regulatory risk with respect to timely release of tariff orders from regulators. With a substantial hike in aeronautical revenue from April 2025 onwards, increasing non-aero revenue and absence of major debt-funded capex, leverage of DIAL is expected to improve substantially marked by estimated net external debt/PBILDT of below 6x in FY26 from ~9x in FY25. GHIAL's performance has steadily improved due to benefit of complete capex leading to increase in number of passengers and aero revenue, the rating agency said.
Mint
15-07-2025
- Business
- Mint
India's aviation sector poised for long-term takeoff, says Jefferies; bets on IndiGo and GMR Airports
India's aviation sector is on the cusp of a multi-decade growth trajectory, supported by demographic tailwinds, infrastructure development, and rising consumer demand, Jefferies said in its latest report. Despite temporary hurdles such as safety incidents and supply chain constraints, the brokerage believes the broader structural story remains intact, driven by low air travel penetration and an expanding middle class. To play this, Jefferies continues to like IndiGo's domestic leadership plus the unfolding Int'l expansion and GMR Airports, which is a play on aviation growth, travel retail, land monetisation amid expected moderation on leverage. According to Jefferies, India has emerged as the third-largest aviation market globally by passenger volume, behind only the US and China. However, it still accounts for just 4 percent of global air traffic, even though it houses nearly 18 percent of the world's population. Jefferies highlighted that this disparity signals an underpenetrated market with significant headroom for growth. As per recent projections by IATA and Airbus, air traffic in India is expected to triple over the next two decades. Jefferies noted that the country's air connectivity is evolving steadily with the introduction of new routes and increased international services. Aggressive fleet expansion by domestic carriers and airport infrastructure investments will help drive industry-wide high single to low double-digit growth over the long term. While India's passenger volumes have grown significantly, Jefferies pointed out that it still lags far behind China's aviation infrastructure. China, with over 250 airports and more than 4,000 aircraft, services more than 700 million passengers annually, compared to India's 200 million passengers, 850 aircraft, and 150-160 operational airports. Jefferies emphasized that despite China having an extensive high-speed rail network that competes with domestic air travel, it still far outpaces India in aviation, underscoring the immense potential for India to catch up. Jefferies observed that international travel has become a key growth lever for Indian carriers. Post-Covid, Indian airlines have aggressively expanded international routes. Carriers like IndiGo and Air India are deploying wide-body aircraft and increasing their share of overseas operations. Jefferies noted that IndiGo's international capacity has surged to 30 percent of its overall capacity, up from low double-digits a decade ago, and is likely to reach 40 percent by 2030. This internationalisation is also driving airport revenues through higher travel retail spending, particularly at metro airports like Delhi and Mumbai. While the long-term opportunity remains attractive, Jefferies acknowledged that multiple challenges could act as temporary roadblocks. These include: Global aircraft shortages and supply chain disruptions, which could delay new aircraft deliveries to Indian airlines. High taxation on Aviation Turbine Fuel (ATF), which inflates operational costs. Geopolitical issues, particularly related to airspace access, which have led to longer and more expensive flight routes. Weak domestic Maintenance, Repair and Overhaul (MRO) infrastructure, increasing dependence on foreign facilities. Psychological spillovers from recent air safety concerns, which may impact passenger confidence in the short term. Despite these challenges, Jefferies believes these are short- to medium-term issues that will not derail the sector's long-term growth path. Among listed players, Jefferies reiterated its preference for InterGlobe Aviation (IndiGo) and GMR Airports. It sees IndiGo as a value proxy for the broader consumption theme, benefiting from its dominant domestic market share and growing international presence. The brokerage highlighted IndiGo's forward valuation of ~12x FY26/FY27 EV/EBITDA as attractive, especially when paired with mid-teens earnings growth and a robust aircraft delivery pipeline. Meanwhile, Jefferies also sees GMR Airports as a strong long-term play on India's aviation ecosystem. The company is set to benefit from the growth in non-aero revenue streams, upcoming city-side land development projects, and favorable regulatory outcomes, including a recent win on aero tariffs at Delhi International Airport Ltd (DIAL). These developments enhance revenue visibility and cash flow generation for the airport operator, Jefferies noted. In conclusion, Jefferies said India's aviation sector is poised for multi-year expansion, riding on the back of favorable demographics, rising discretionary incomes, and expanding connectivity. While operational challenges remain, the long-term growth fundamentals are solid. Jefferies believes that leading players like IndiGo and GMR Airports offer attractive opportunities for investors looking to ride this secular growth story. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Upturn
03-07-2025
- Business
- Business Upturn
GMR Airports shares rise after TDSAT quashes AERA's HRAB calculation; Jefferies sees upside with Rs 100 target price
By Aditya Bhagchandani Published on July 3, 2025, 09:21 IST Shares of GMR Airports rose over 1% to ₹89.32 on Wednesday, July 3, after a favorable order by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) directed the Airports Economic Regulatory Authority (AERA) to recompute the Hypothetical Regulated Asset Base (HRAB) for Delhi International Airport (DIAL), a GMR subsidiary. In its judgment dated July 1, 2025, TDSAT set aside AERA's earlier HRAB calculation, citing errors, and instructed it to recalculate the HRAB afresh from April 1, 2009, based on the tariff components agreed in the State Support Agreement between the Government of India and DIAL. This came after DIAL had filed a review petition following the Supreme Court's 2023 direction to TDSAT to re-examine the matter. GMR informed exchanges that the positive impact of the revised HRAB would reflect during the next tariff determination exercise. Jefferies reiterated its 'Buy' rating on the stock with a target price of ₹100, stating that a higher HRAB could significantly enhance allowable tariff recovery and profitability for DIAL, addressing past under-recoveries. The brokerage also highlighted potential upside from other under-recovery debates. Meanwhile, GMR Airports shares were trading at ₹89.32, up 1.04%, compared to the previous close of ₹88.40. The stock has touched a day's high of ₹90.28 and a low of ₹89.40 so far, with a market cap of ₹947.87 billion and an average volume of 12.64 million shares. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
03-07-2025
- Business
- Business Upturn
Jefferies sees upside in GMR Airports as TDSAT ruling on HRAB boosts prospects
By Aditya Bhagchandani Published on July 3, 2025, 08:32 IST Jefferies has reiterated a buy rating on GMR Airports with a target price of ₹100, citing potential upside from a favorable ruling on the Highly Regulated Asset Base (HRAB) for Delhi International Airport (DIAL). The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) recently quashed the Airports Economic Regulatory Authority's (AERA) earlier computation of HRAB for DIAL and directed a fresh calculation. The HRAB, a notional asset base, is critical in determining aero tariffs for airports. Jefferies noted that TDSAT found AERA's methodology for calculating HRAB to be incorrect, and if the final ruling favors DIAL, it could allow the airport operator to recover significant under-recoveries from the past. This would meaningfully enhance DIAL's tariff recovery and profitability going forward. The brokerage highlighted that other debated under-recoveries are also under review, which could further add to the upside potential in DIAL's earnings if resolved favorably. Meanwhile, the shares of GMR Airports continue to trade actively as investors await clarity on the final HRAB calculation and its impact on future profitability. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Mint
17-06-2025
- Business
- Mint
Stocks to buy under ₹100: Experts recommend four shares to buy today — 17 June 2025
Stocks to buy under ₹ 100: Extending the recovery from Friday's lows, the Indian stock market opened with an upside gap and ended higher on Monday. The Nifty 50 index finished 229 points higher at 24,946, the BSE Sensex ended 677 points higher at 81,796, while the Bank Nifty index gained 417 points and closed at 55,944. BEL, HDFC Life and SBI Life emerged as major gainers on the Nifty. At the same time, Tata Motors, Dr Reddy and Sun Pharma bore the brunt of significant selling pressure, ultimately closing the session as major losers. Speaking on the outlook of the Nifty 50 today, Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, said, "The Nifty 50 extended the gains further ahead with a steady rise as the day progressed and closed above the 24,900 zone with sentiment much better placed and anticipating further positive developments in the coming sessions. As mentioned earlier, the index would have the crucial and important support zone near the 24,500 zone, and a decisive move above the 25,200 level shall trigger a fresh rise in the coming days to strengthen the trend." "The Bank Nifty index witnessed a significant recovery from the low made near the 55150 zone in the previous session and ended with a much optimistic note near the 56,000 zone with most of the banking stocks showing a decent bounce back and improving the bias to anticipate for further upward movement for the index. Once again, a decisive move above the 56,000 zone is confirmed; it shall turn the bias positive and with near-term support positioned near the 55,000 level, one can expect the index to retest the peak zone of 57,000 levels in the coming days," Shiju Kuthupalakkal said. Regarding stocks to buy today, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher; Mahesh M Ojha, AVP — Research at Prabhudas Lilladher; Sugandha Sachdeva, Founder of SS WealthStreet; and Anshul Jain, Head of Research at Lakshmishree Investment and Securities — recommended these four intraday stocks for today under ₹ 100: GMR Airports, Sigachi Industries, Niva Bupa Health Insurance Company, and Punjab & Sind Bank (PSB). 1] GMR Airports: Buy at ₹ 83.70, Target ₹ 87, Stop Loss ₹ 82. 2] Niva Bupa Health Insurance Company: Buy at ₹ 81 to ₹ 81.90, Targets ₹ 83.50, ₹ 85, ₹ 87, ₹ 90, Stop Loss ₹ 79.80. 3] PSB: Buy at ₹ 31, Targets ₹ 33, ₹ 34.70, Stop Loss ₹ 29.80. 4] Sigachi Industries: Buy at ₹ 58.50, Target ₹ 67, Stop Loss ₹ 55 (Closing Basis).
