Target: ₹123
CMP: ₹95.11
GMR Airports , India’s largest private airport operator with 27 per cent of passenger traffic, is set to post a 9 per cent passenger traffic CAGR in FY25-28E, beating India’s 5 per cent average, led by rising traffic and a stronger international mix. Passenger throughput should scale up, with DIAL and GHIAL anchoring growth and international traffic gaining share.
Diversification is set to rise on: aero growth from tariff hike and capacity rise, non-aero reset and Groupe ADP partnership boosting retail, including duty-free, MRO and cargo, land monetisation offering multi-year annuity revenue. ADP’s strategic board-level presence will prop fund-raising ability, execution and bidding competitiveness.
Next growth phase, led by non-aero and commercial property, will shift GMR Airports from a utility to a consumption play, with FY26 marking a turning point, as PAT turns positive, deleveraging starts (capex peaked out) and credit rating upgraded.
Initiate with Buy and SoTP-TP of ₹123. GMR Airports trades below its three year average EV/EBITDA of 26x – It is an attractive entry into India’s only listed pure-play airport operator. Risks are high debt and threat from new entrants.