GMRAIRPORT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.8

📊 Core Financials Breakdown

Profitability

ROE: -0.55% and ROCE: 1.08% — extremely weak, indicating poor capital efficiency.

EPS: -₹0.21 — negative earnings, which explains the absence of a valid P/E ratio.

PAT Qtr: -₹178 Cr vs ₹68.5 Cr — sharp reversal, suggesting earnings volatility or one-off charges.

Balance Sheet & Leverage

Debt-to-Equity: 0.17 — low leverage, which is a positive.

Book Value: ₹50.9 — implies a P/B ratio of ~1.8, reasonable but not cheap given negative earnings.

Dividend Yield: 0.00% — no income for long-term holders.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio N/A Not meaningful due to negative EPS

PEG Ratio N/A Not available — growth outlook unclear

Intrinsic Value ~₹80–₹85 CMP slightly above fair value zone

Valuation is speculative, driven more by sentiment and infrastructure optimism than earnings.

✈️ Business Model & Competitive Edge

Sector: Airport infrastructure — long-gestation, capital-intensive, and regulated.

Strengths

Operates major airports in Delhi, Hyderabad, and Goa (Mopa), with international expansions underway

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Benefiting from rising air traffic and tourism growth

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FII and DII holdings have increased — signaling cautious optimism.

Challenges

Negative ROE and volatile profits.

High enterprise value relative to earnings (EV/EBITDA ~28.7)

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Net losses of ₹4,630 Cr over the last 12 months

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Book value per share is negative in some estimates

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📉 Technicals & Entry Zone

Current Price: ₹91.7

DMA 50: ₹88.7 | DMA 200: ₹85.3 — bullish trend intact

RSI: 62.3 — approaching overbought zone

MACD: Positive — momentum building

📌 Suggested Entry Zone: ₹80–₹85

A dip near the 200 DMA would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold with caution: If already invested, monitor earnings consistency and airport traffic growth.

Avoid fresh entry at CMP: Wait for signs of sustained profitability or regulatory tailwinds.

Analysts expect long-term upside from airport expansions and rising domestic air travel

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. You can explore GMR Airports’ valuation and analyst narratives on Simply Wall St or technical breakout insights from Mirae Asset Sharekhan. Let me know if you'd like a peer comparison with Adani Airports or IRB Infra.

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simplywall.st

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Zee Business

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stockanalysis.com

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