Shares of GMR Airports Infrastructure Limited traded 5 percent higher to Rs 90, snapping its two-day losing streak on May 27 after Jefferies initiated coverage with a 'buy' call citing robust growth prospects.
The international brokerage has assigned a price target of Rs 100, which is an upside of 15 percent from the last close of Rs 86 on the National Stock Exchange (NSE).
Analysts suggest that the company is slated to benefit from the strong air traffic growth outlook, travel retail opportunity, upward reset in aero tariffs, and real estate unlocking opportunity.
Furthermore, Jefferies believes that the company's growth story is evolving from a 'utility to a retail consumption play.' The company's current move to simplify the corporate structure, improve leverage ratios, and support from Aéroports de Paris (ADP) will support re-rating. ADP has a 49 percent stake in GMR Airports.
GMR Airports is involved in the development, operation, and maintenance of airports, as well as providing integrated security solutions. Their airport portfolio includes three operational assets: Delhi International Airport Hyderabad International Airport in India, and Mactan-Cebu International Airport in the Philippines.
At about 9:20 am, shares of the company were trading at Rs 89, up 2.4 percent from the last close on the NSE. GMR Airport shares haven't performed well, slipping 2 percent in the last three months.
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