03-07-2025
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.
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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.
