Jefferies has maintained its Buy rating on GMR Airports, with a target price of Rs 106, which implies a potential upside of around 21% from the current market price of Rs 87.74. The brokerage firm expects the stock to benefit significantly from recent developments and a stronger growth trajectory.
Key reasons for Jefferies’ optimism:
- Nagpur Airport Concession Agreement: GMR has finally signed the concession for Nagpur Airport. While the airport is relatively small currently, the city holds strategic importance as the geographic center of India. This new concession is expected to contribute significantly to GMR’s future growth.
- Potential for Expansion: Although the airport’s current size is modest, its expansion potential, particularly in a strategically vital city like Nagpur, could serve as a springboard for GMR’s long-term prospects in the aviation sector.
- Stronger Growth Trajectory: The agreement, according to Jefferies, is likely to put GMR Airports on a stronger growth trajectory as the company leverages the concession to scale up operations and infrastructure.
Disclaimer: Stock market investments are subject to market risks. This article is for informational purposes only and should not be construed as investment advice. Please do your own research or consult a financial advisor before making any investment decisions.
