Shares of GMR Airports Infrastructure Limited traded 5% higher at Rs 90 on May 27, snapping a two-day losing streak. This rise follows Jefferies’ initiation of coverage with a ‘buy’ rating, citing strong growth prospects.
Jefferies has set a price target of Rs 100, representing a 15% upside from the last close of Rs 86 on the National Stock Exchange (NSE).
Analysts from Jefferies highlighted that GMR Airports is well-positioned to benefit from robust air traffic growth, opportunities in travel retail, an upward reset in aero tariffs, and the unlocking of real estate value.
Jefferies also noted that GMR Airports’ growth story is transitioning from a utility focus to a retail consumption play. The company’s efforts to simplify its corporate structure, improve leverage ratios, and the support from Aéroports de Paris (ADP), which holds a 49% stake in GMR Airports, are expected to support a re-rating.
As of 10:27 am, the shares were trading 1.09% higher at ₹87.90 on the NSE.
