Shares of GMR Airports Ltd gained more than 4% on Tuesday, Nov 18, trading at ₹101.75, after Jefferies issued a positive update and increased its target price on the stock.
Jefferies maintained its ‘Buy’ rating and raised the target price to ₹115 from ₹108, citing an improving business outlook. The brokerage said it has further raised its EBITDA estimates by 3–7%, supported by better visibility across the company’s operating metrics.
According to the update, GMR Airports delivered a standout EBITDA beat of 74% YoY in Q2, driven by new tariffs, strong non-aero revenue growth, and the continued scaling of adjacent businesses.
Traffic declined during the quarter due to Delhi airport upgrades and airline capacity cuts, but Jefferies expects a rebound in the second half of the year.
Yields remained strong, with retail and duty-free tailwinds aiding growth.
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Aero Yield per Pax (YPP) rose 69% YoY and 18% QoQ
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Non-Aero YPP increased 17% YoY and 10% QoQ
The company is targeting a minimum 14–15% YoY growth in Non-Aero Revenue, Jefferies noted.
