Reduce GMR Airports Infrastructure; target of Rs 85: ICICI Securities

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ICICI Securities research report on GMR Airports Infrastructure

GMR Airports Infrastructure’s (GMRI) deal with strategic investor has reached its conclusion with strategic investor now holding shares of the listed entity. This will also lead to simplification of group structure. Grupo ADP, the strategic investor, had invested in Feb‘20 in the subsidiary of the listed company. Also, the existing FCCB from KIA has been converted into equity. Total share capital being issued has increased from INR 6bn to INR 10.5bn. As a result, market cap of listed entities is now close to INR 1trn. In Q1FY25, traffic grew 7% YoY, a tad lower than the recent growth trajectory.

Outlook

We believe GMRI should be a profitable entity in FY26E with new tariff order likely by FY25-end. We maintain REDUCE on expensive valuations with TP of INR 85 (vs INR 75 earlier).

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GMR Airports Infrastructure - 220824 - isc