'Indian Aviation on the cusp of strong growth': JM Financial expects GMR Airports shares to rise 19%

Shares of GMR Airports Ltd. gained on Monday, December 22, after brokerage firm JM Financial initiated coverage on the stock, projecting an upside potential of nearly 18.5% from its previous close.

JM Financial has initiated coverage with a "buy" rating on GMR Airports, with a price target of ₹120 per share.

The brokerage said that airports are an asset-based logistics infrastructure play, but on passengers and on their spending capacity. It is of the view that the Indian aviation is at the cusp of strong growth, given rising affluence and leisure-spending propensity.

The triggers include a strong project pipeline of new airports — healthy orderbook of aircraft to be delivered and airlines are expecting a sharp growth in domestic and international passenger growth.

It expects GMR's joint venture (JV) airports to deliver 10% non-aero revenue compounded annual growth (CAGR) over FY26-28. The regulated return model on investments de-risks aero capex, it said.

The Delhi International Airport Ltd. will complete its final expansion over FY26-30, JM Financial said. The consolidation of non-aero revenue streams into the GMR Airports Ltd. standalone platform, which will increase visibility of revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA), according to JM Financial.

The brokerage estimates 19% EBITDA CAGR over FY26-28 for GMR Airports, resulting in profit after tax (PAT) CAGR of 111%.

Of the seven analysts who have coverage on the GMR Airports stock, six have a "buy" rating, while one has a "hold" rating.

Shares of GMR Airports are trading 1.5% higher on Monday at ₹103.1. The stock has risen 31% so far in 2025, and are trading close to their 52-week high of ₹110.

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