Airport stock under ₹100 to buy now for an upside potential of 15%; Do you own it?

India’s airport and aviation services sector is undergoing rapid expansion, driven by rising air travel demand and infrastructure development. By 2025, India is projected to have 200 operational airports, supported by investments exceeding Rs 92,000 crore. Passenger traffic is expected to grow by 7 percent, while the ground handling market will reach Rs 200.23 billion. 

Price movement 

With a market capitalization of Rs 86,741.99 crore, the shares of GMR Airports Ltd were trading at Rs 82.11 per share, increasing around 4.12 percent as compared to the previous closing price of Rs 78.86 per share. 

Brokerage target 

Citi, one of the well-known brokerages globally, gave a ‘buy’ call on the stock with a target price of Rs 90 apiece, indicating a potential upside of 15 percent from Wednesday’s low of Rs 78.14 per share. 

Brokerage Rational 

Citi sees GMR Airports as fundamentally strong, benefiting from India’s expected 8 percent CAGR in passenger growth from FY24- 27. Its assets have comparative advantages, free cash flow is turning positive, and regulations are defensive yet hybrid, with commercial opportunities providing additional upside, according to Citi. 

Citi projects GMR Airports to turn profitable from FY26, with core earnings 5 percent-6 percent above estimates for FY26-27, driven by 8 percent traffic growth. Key factors include a 2.4x tariff hike in Delhi and a 7.5 percent annual rise in non-aero spending per passenger across major airports. 

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Market Outlook 

India is set to remain the fastest-growing economy, with the travel retail market expected to grow at a 21.6% CAGR from 2024 to 2029. Rising direct connectivity and increased transit traffic through Indian airports further strengthen the country’s position as a key global travel hub. 

Management’s Confidence 

Management is optimistic about traffic growth, operational efficiency, and strengthening cash flow and balance sheets. Improved EBITDA growth is anticipated with the upcoming Delhi Airport tariff order, expected by December 2024, reinforcing confidence in financial performance and long-term stability. 

Company Profile 

GMR Airports Infrastructure Limited is an India-based company that operates integrated airport platforms with a portfolio of airport assets. The Company’s airports include Delhi International Airport, Hyderabad International Airport, Goa International Airport, Visakhapatnam International Airport, Bidar Airport, Mactan Cebu International etc.

Written by Abhishek Singh

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