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Jefferies has issued a “Buy” call on GMR Airports, setting a target price of ₹106, citing the Delhi International Airport (DIAL) deal as attractively priced. The brokerage notes that over 50 per cent of its valuation for GMR Airports in its sum-of-the-parts (SOTP) valuation comes from DIAL, in which the Airports Authority of India (AAI) will retain a 26 per cent equity stake. However, Jefferies has not yet reviewed the SOTP valuations for GMR, given that the deal is still in the closing phase.
In contrast, Kotak Institutional Equities has given a “Sell” recommendation, raising the target price to ₹74 to account for recent positive surprises, including GMR Airports Ltd (GAL) winning the Delhi Duty-Free business and a stake consolidation in DIAL. Kotak advises caution, urging investors to look beyond a simplistic view of GMR Airports as a monopolistic play on non-aeronautical growth.
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