Can GMR Airports Fly Higher With Elara Capital’s Buy Call?
About GMR Airports
Elara Capital has initiated a Buy rating on GMR Airports with a target price of ₹123 (CMP ₹95.11). The brokerage expects the company to post a 9% CAGR in passenger traffic between FY25–FY28, outperforming India’s average of 5%, driven by rising international traffic and strong domestic throughput at DIAL and GHIAL.
GMR Airports, India’s largest private airport operator with 27% passenger share, is expected to benefit from its diversified business mix — including aero growth from tariff hikes, cargo expansion, MRO, and land monetisation. Groupe ADP’s presence further strengthens capital access and competitiveness.
Key Highlights
- ✅ Passenger traffic CAGR at 9% vs India’s 5% average (FY25–FY28).
- ✅ Non-aero growth from duty-free, cargo, and commercial real estate.
- ✅ Credit rating expected to improve as capex cycle peaks out in FY26.
- ✅ Attractive valuation at 26x EV/EBITDA — below 3-year average.
Elara expects FY26 to be a turning point for GMR Airports, with PAT turning positive and deleveraging underway. The transition from a utility to a consumption play strengthens its long-term prospects.
For trend-based strategy cues, track Nifty Option Tip and BankNifty
Valuation & Risks
- Short-term: Attractive entry into India’s only listed airport play.
- Medium-term: Positive PAT and rating upgrade expected by FY26.
- Long-term: Multi-year growth through passenger recovery and aero revenue.
- Risks: High debt levels and competition from new entrants.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, highlights that GMR Airports’ multi-asset growth and improving leverage position it as a long-term aviation infrastructure bet. Explore detailed sector insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on GMR Airports
- Will International Traffic Boost GMR’s FY26 Profit Turnaround?
- Can GMR Airports Sustain Growth Amid Rising Competition?
- Is GMR a Long-Term Infra Play After Debt Reduction?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
