GMR Infra Shares Set to Soar: Jefferies Initiates Coverage with 15% Upside
GMR Airports Infrastructure Ltd shares may see a 15% upside
Gmr InfraJefferiesAirport InfrastructureStock MarketInvestmentReal Estate NewsMay 27, 2024
GMR Airport is evolving from utility to a retail consumption play and is slated to benefit from the strong air traffic growth outlook, travel retail opportunity, led by top end consumption, upward reset in Aero tariffs and real estate unlocking opportunity, said Jefferies.
Shares of GMR Airports Infrastructure rose more than 3.22 per for the day to Rs 89.72 on Monday, commanding a total market capitalization of more than Rs 55,000 crore.
Airport biz in India has a mixed revenue profile of regulated aero revs, which provides for regulated returns on aero activities and upside potential on non-regulated revenue. The business benefits from rising consumer appetite to spend at Airports. Further, we believe as the mix/profile of travelers grows, the spend per pax at duty free will trend towards the global average, said Jefferies.
GMR Infra is amid the last leg of simplification of the corporate structure to merge GMR Airport Ltd, the existing airport platform, with GIL. The merger would strengthen the strategic relationship with ADP by bringing them to the listed company level and also allow improvement in upstreaming of Airport FCFs, it said.
Further, ongoing simplification of corporate structure, improvement in leverage ratios, ADP's backing will support re-rating. The brokerage expects GMR Infra's ebitda CAGR of 32 per cent over FY24-FY27e. \We value GMR Infra at Rs100, valuing the airport subsidiary at 27 times FY30 EBITDA, discounted at 12 per cent for four years,\ it said.
Jefferies expects PAT positive in FY26 and leverage ratios to moderate, as large capex related to DIAL/GHIAL is behind. \ADP’s presence at strategic and board level will ensure fund-raising capabilities, project execution and bidding capabilities,\ it added with a 'buy' rating with a target price of Rs 100. Jefferies cites slowdown in air traffic, tariff order delays, adverse regulatory changes as key risks.
GMR Airports Infrastructure Ltd is a leading airport infrastructure company in India, with a presence in several airports across the country. The company has been focusing on simplifying its corporate structure and improving its financial performance.
Jefferies is a global investment banking and brokerage firm that provides research and analysis on various stocks and companies. The firm has a strong presence in several countries, including India, and is known for its in-depth research reports and analysis.
Frequently Asked Questions
What is GMR Infra's expected ebitda growth? A: GMR Infra's expected ebitda growth is 32% CAGR over FY24-FY27e Q: What is the target price set by Jefferies for GMR Infra? A: The target price set by Jefferies for GMR Infra is Rs 100 Q: What are the key risks cited by Jefferies for GMR Infra? A: The key risks cited by Jefferies for GMR Infra are slowdown in air traffic tariff order delays and adverse regulatory changes Q: What is the current market capitalization of GMR Airports Infrastructure Ltd? A: The current market capitalization of GMR Airports Infrastructure Ltd is over Rs 55 000 crore Q: What is the expected improvement in GMR Infra's leverage ratios? A: The expected improvement in GMR Infra's leverage ratios is due to the simplification of corporate structure and improvement in financial performance
Answer not available
Related News Articles
Avoiding Pitfalls: 8 Common Mistakes Housing Societies Make in Redevelopment
Learn how to navigate the challenges of redevelopment and avoid common mistakes that can lead to costly and problematic projects
India's Manufacturing Sector: A Decade of Progress and Challenges
India's manufacturing sector has made significant strides since 2014, but can it meet the government's ambitious target of 25% of GDP by 2030?
Gurugram: Info-x Software Snags Luxury Penthouse at The Camellias for INR 190 Crore
In a significant move in the real estate sector, Info-x Software, a renowned tech company, has acquired a luxury penthouse at The Camellias in Gurugram for a staggering INR 190 crore. This acquisition underscores the growing interest of business leaders a
The Luxurious 25,000 sq ft Penthouse in Mumbai: A Glimpse into Niranjan Hiranandani's Magnificent Abode
Mumbai, the city of dreams, is home to some of the most iconic and luxurious residences. Among these is a 25,000 square foot penthouse, the epitome of opulence, owned by one of India's leading real estate tycoons, Niranjan Hiranandani. This article takes
I-T Department Can Seize Benami Assets Even Without Tracing Actual Owner: Authorities
New Delhi: The Income Tax (I-T) Department has the authority to attach assets under the anti-benami law, even if the actual owner of the property has not been identified.
Google India extends 5-year lease in Mumbai’s BKC for ₹304 crore
Mumbai real estate update: Google India has renewed its 5-year lease at the First International Financial Centre (FIFC) in Bandra Kurla Complex (BKC) for a hefty rent of ₹304 crore.