GMRAIRPORT - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.3
| Stock Code | GMRAIRPORT | Market Cap | 1,03,552 Cr. | Current Price | 98.1 ₹ | High / Low | 110 ₹ |
| Book Value | 50.3 ₹ | Dividend Yield | 0.00 % | ROCE | 1.08 % | ROE | -0.55 % |
| Face Value | 1.00 ₹ | DMA 50 | 98.1 ₹ | DMA 200 | 93.0 ₹ | Chg in FII Hold | 1.88 % |
| Chg in DII Hold | -0.21 % | PAT Qtr | -133 Cr. | PAT Prev Qtr | -178 Cr. | RSI | 51.8 |
| MACD | -1.89 | Volume | 7,81,69,785 | Avg Vol 1Wk | 2,83,87,451 | Low price | 67.8 ₹ |
| High price | 110 ₹ | Debt to equity | 0.21 | 52w Index | 71.2 % | Qtr Profit Var | 21.7 % |
| EPS | -0.28 ₹ | Industry PE | 7.69 |
📊 Analysis: GMRAIRPORT shows weak fundamentals for long-term investment. ROCE (1.08%) and ROE (-0.55%) are very poor, indicating inefficient capital usage and negative shareholder returns. EPS of -0.28 ₹ reflects losses, while debt-to-equity at 0.21 is manageable but not a strong positive. The absence of a meaningful P/E ratio due to negative earnings highlights valuation concerns. Dividend yield of 0% offers no shareholder returns. Technically, the stock is trading near DMA 50 (98.1 ₹) and above DMA 200 (93.0 ₹), with RSI at 51.8 (neutral) and MACD negative, suggesting consolidation. Despite improving PAT (-133 Cr. vs -178 Cr.), profitability remains negative.
💰 Ideal Entry Zone: 70 ₹ – 85 ₹ (closer to 52-week low, offering margin of safety and better valuation comfort).
📈 Exit / Holding Strategy: If already holding, consider exiting on rallies near 105–110 ₹ (52-week high zone). Long-term holding is not advisable unless ROE and ROCE improve significantly and profitability turns positive. Current metrics suggest weak growth potential, so capital may be better deployed in stronger infrastructure or airport peers.
Positive
- Large market cap (1,03,552 Cr.) provides scale and visibility.
- Debt-to-equity ratio of 0.21 shows manageable leverage.
- Improvement in quarterly PAT (-133 Cr. vs -178 Cr.), showing narrowing losses.
- FII holdings increased (+1.88%), reflecting foreign investor interest.
Limitation
- Negative ROE (-0.55%) and very low ROCE (1.08%).
- EPS of -0.28 ₹ reflects losses.
- No dividend yield, offering no shareholder returns.
- Absence of meaningful P/E ratio due to negative earnings.
Company Negative News
- Quarterly losses continue despite improvement (PAT -133 Cr.).
- Decline in DII holdings (-0.21%), showing reduced domestic institutional confidence.
Company Positive News
- Quarterly profit variation +21.7%, showing improvement in losses.
- Increase in FII holdings (+1.88%), reflecting foreign investor confidence.
Industry
- Industry PE at 7.69, far below company’s valuation, highlighting overvaluation.
- Airport and infrastructure sector benefits from rising passenger traffic and government investment, but profitability remains critical.
Conclusion
⚠️ GMRAIRPORT is not a strong candidate for long-term investment due to poor ROE, ROCE, and continued losses. Entry only makes sense near deep value zones (70–85 ₹) for speculative recovery trades. Long-term investors should avoid or exit on rallies unless fundamentals improve significantly.
Selva, would you like me to extend this into a peer benchmarking overlay with airport and infrastructure peers (like Adani Ports, AAI-linked operators, or IRB Infrastructure) so you can compare relative strength and margin-of-safety positioning for your basket rotation strategy?