Buy GMR Airports; target of Rs 120: Emkay Global Financial

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • Passenger traffic growth: Expected to remain positive in 2HFY27, supported by seasonality factors and higher airline slot requirements.
  • Non-aero revenue resilience: Healthy growth in non-aero revenue, led by an increase in per passenger spending and commercial area expansion.
  • Cost discipline: Improvement in margins due to cost control measures and higher capacity utilization.
  • Debt management: Net debt remains unchanged at Rs340bn, with improved credit ratings.

Thesis Validation Checklist

  • Passenger traffic growth: Monitor traffic growth, especially in 2HFY27, to validate the positive outlook.
  • Non-aero revenue growth: Track non-aero revenue expansion to ensure it remains resilient.
  • Margin expansion: Observe margin improvement due to cost discipline and higher capacity utilization.
  • Debt management: Keep an eye on debt levels and credit ratings to ensure stability.