GMRAIRPORT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.6

📊 Financial Snapshot

EPS (-₹0.37) with loss-making quarters (PAT: -₹298 Cr) — ongoing negative bottom line.

ROCE (6.89%) — suboptimal return on capital; ROE missing.

Book Value (-₹2.37) — negative, implying accumulated losses and weak net worth.

Dividend Yield (0.00%) — no shareholder returns; reinforces cash conservation stance.

Debt Metrics: Not provided, but likely high given infra funding needs and negative net worth.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio — Not computable due to losses

P/B Ratio — Negative book value makes ratio meaningless

PEG Ratio — Growth forecasts unclear; not meaningful amid losses

Intrinsic Value — Estimated at ₹75–₹85 — current price trades above fair zone

🚨 Valuation is speculative; investors likely pricing long-term turnaround despite poor fundamentals.

🧵 Business Model & Competitive Advantage

Sector: Airport operations, retail, cargo, and infrastructure — highly capital-intensive, cyclical.

Strengths

Monopoly-like control over strategic airport assets.

Government support often plays a stabilizing role in infra plays.

Risks

Consecutive losses, negative book value — signs of financial stress.

Susceptibility to interest rate shifts, regulatory oversight, and air travel volatility.

Cash burn and long gestation periods — common in infra development cycles.

📉 Technical Indicators & Entry Strategy

Current Price: ₹90.2

DMA 50 / 200: ₹88.1 / ₹83.7 — above trend lines, showing bullish technical breakout

RSI (51.5): Neutral — room for upward movement

MACD (1.14): Bullish crossover — momentum picking up

Volume: Slightly below average — mixed conviction

🛒 Suggested Entry Zone: ₹80–₹85 Entry only if you're betting on a long-term airport infra revival and can stomach volatility. Wait for MACD strength and volume recovery for confirmation.

🧭 Long-Term Holding Guidance

GMRAIRPORT is a classic turnaround play — high reward potential, but risk-intensive

Only consider a position if you expect a revival in passenger and cargo throughput.

Keep an eye on quarterly losses narrowing and debt restructuring progress.

Re-evaluate if ROCE doesn't improve toward 10% or if EPS remains negative over multiple quarters.

🔍 Prefer a more stable infra bet? I can contrast this with AAI-linked players or logistics firms with steady earnings. Let’s dig deeper and refine the airport exposure with safer wings. ✈️📊

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