GMR Airports Infrastructure Ltd. surged to a new 52-week high to ₹110.36 in today’s trade after BofA Securities initiated coverage on the stock with a Buy rating and set a target price of ₹128 per share. The global brokerage said the company is stepping into a phase marked by strong earnings visibility, supported by resilient travel demand, a favourable regulatory backdrop and significant upside potential from non-aero operations and real estate monetisation.
BofA noted that GMR is uniquely positioned to gain from India’s long-term aviation boom, which is being fuelled by rising passenger volumes, improving yields and a steady expansion of commercial income streams across its airport portfolio. The firm added that the stock’s valuation—hovering near 15x adjusted EV/EBITDA—appears attractive when weighed against its future earnings trajectory.
The brokerage also highlighted several catalysts that could trigger upward revisions to earnings expectations. Among them are the reopening of Pakistan’s airspace, which would enhance flight economics; further clarity on the hypothetical RAB decision; smooth execution of non-aero and property development plans; and the possibility of dividends being initiated as cash flows strengthen in the coming years.
While the outlook is constructive, BofA pointed out a few risks that investors should keep an eye on. These include potential short-term disruptions once Delhi’s second airport becomes operational, the risk of a tougher regulatory environment during tariff resets, geopolitical factors that could weigh on Delhi’s international traffic, and the company’s already stretched balance sheet that restricts financial flexibility.
Despite these concerns, BofA Securities believes GMR Airports has a long runway for growth, backed by scale, diversified revenue levers and legal clarity that could further accelerate profitability.
As of 9:31 AM, the stock was trading 1.34% higher at ₹109.08, reflecting strong investor enthusiasm following the brokerage’s bullish view.
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