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% 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% 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.
