&w=3840&q=100)
GMR Airports hits 9-month high, regains ₹1 trillion market cap. Do you own?
Shares of GMR Airports hit a nine-month high of ₹95.38, gaining 2 per cent on the BSE in Thursday's intra-day trade in an otherwise subdued market. The stock price of GMR Group Company was quoting higher for the fourth straight day, surging 5 per cent during the period. It was trading at its highest level since September 2024.
In the past one month, GMR Airports has outperformed the market by surging 15 per cent, as compared to 1.1 per cent rise in the BSE Sensex. The stock had hit a 52-week high of ₹103.70 on July 31, 2024.
A sharp rally in the stock price has seen GMR Airports regain market capitalisation of ₹1 trillion today. At 10:06 AM: with ₹100,511 crore (₹1.0 trillion) market capitalisation GMR Airports was trading 1.4 per cent higher at ₹95.19. In comparison, the BSE Sensex was down 0.11 per cent at 82,547.
CARE Ratings - rating rationale
On June 26, 2025, CARE Ratings upgraded its ratings from 'CARE BBB+; Stable/CARE (Triple B Plus); Outlook: Stable/Care A2' to 'CARE A; Outlook: Stable / CARE A1' for the long-term / short-term bank facilities already availed by the GMR Airports.
The upgrade in ratings assigned to debt instruments and bank facilities of GMR Airports factors in full and final settlement of liabilities of GMR Rajahmundry Energy leading to elimination of potential risk related any future recourse to GMR Airports.
The rating revision also factors in expected expansion of profit before interest, lease rentals, depreciation, and tax (PBILDT) with slated takeover of duty-free concessions of Delhi International Airport (DIAL) and GMR Hyderabad International Airport (GHIAL) likely from July 2025 and August 2025 onwards, respectively, and significant dividend inflow from GHIAL in line with dividend received in FY25. This is expected to improve interest coverage ratio of GMR Airports significantly compared to below unity interest coverage in the past, CARE Ratings said in its rating rationale.
GMR Airports derives healthy financial flexibility being a listed holding company of two major operating Indian airports, DIAL and GHIAL. Both airports are among busiest airports in India.
Ratings continue to factor favourable outlook of air passenger traffic in India, GMR Airports' strategic partnership with Aeroports De Paris (Groupe ADP), and demonstrated track record of funds raised in the past several years to meet refinancing and/or capital expenditure (capex) requirements, the rating agency said.
Favourable outlook for airports business
CareEdge Ratings projects a robust 9 per cent compounded annual growth rate (CAGR) in air passenger traffic over FY25- FY27, with international traffic growth expected to outpace domestic growth. This surge is driven by strong air travel demand and additional capacity creation by both airports and airlines. By FY27, passenger traffic is anticipated to reach ~485 million, reflecting the sector's strong recovery and growth trajectory. However, the sector is exposed to inherent regulatory risk with respect to timely release of tariff orders from regulators.
With a substantial hike in aeronautical revenue from April 2025 onwards, increasing non-aero revenue and absence of major debt-funded capex, leverage of DIAL is expected to improve substantially marked by estimated net external debt/PBILDT of below 6x in FY26 from ~9x in FY25. GHIAL's performance has steadily improved due to benefit of complete capex leading to increase in number of passengers and aero revenue, the rating agency said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
16 minutes ago
- Economic Times
Knowledge Realty Trust REIT shares list at 4% premium over issue price
Knowledge Realty Trust REIT made a steady debut on the bourses today, with a premium of 4%. The stock listed at Rs 103 on the NSE and Rs 104 on the BSE against the issue price of Rs 100 per unit. ADVERTISEMENT The Rs 4,800 crore IPO of Knowledge Realty Trust REIT, India's largest office real estate investment trust, had received robust investor interest, with the issue subscribed 12.48 times overall. The QIB portion was booked 9.07 times, while non-institutional investors (NIIs) subscribed 16.57 times. The REIT also garnered Rs 1,620 crore from anchor investors ahead of the IPO. Proceeds from the fresh issue will primarily be used to partially or fully repay borrowings of its asset SPVs and investment entities, amounting to Rs 4,640 crore, with the balance earmarked for general Realty Trust REIT manages a portfolio of 30 Grade-A office assets across six cities, including Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City in Ahmedabad, with a committed occupancy of 91.4% as of March 31, tenant base includes Fortune 500 companies, global capability centres, and leading domestic corporates. ADVERTISEMENT For FY25, the REIT reported total income of Rs 4,146.86 crore, up 16% year-on-year, though profit after tax fell 34% to Rs 222.52 crore. Unlock 500+ Stock Recos on App With its scale, geographic diversification, and backing from global sponsors Blackstone and Sattva, Knowledge Realty Trust REIT is being closely watched as a barometer for institutional appetite in India's commercial office space. ADVERTISEMENT Analysts expect the trust's stable rental income and strong tenant mix to support long-term returns, though near-term performance will depend on secondary market sentiment. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
News18
16 minutes ago
- News18
Following the GST Rejig, Indian Markets Opened In Green. Sensex surged 900 points
Following the GST Rejig, Indian Markets Opened In Green. Sensex surged 900 points | News18 Last Updated: India Videos | Following the GST rejig, Indian markets opened in green. Sensex surged 900 points, while Nifty gained 300 points.n18oc_indiaNews18 Mobile App -
The Hindu
16 minutes ago
- The Hindu
Sensex jumps over 1,000 points, Nifty tops 24,953.50 level buoyed by proposed GST reforms
Benchmark indices Sensex and Nifty surged in early trade on Monday (August 18, 2025), buoyed by plans for big bang reforms in the GST regime by Diwali and S&P upgrading India's sovereign credit rating. Auto, consumer discretionary and consumer durables stocks propelled the rally in the equity market. The 30-share BSE Sensex jumped 1,021.93 points to 81,619.59 in early trade. The 50-share NSE Nifty surged 322.2 points to 24,953.50. From the Sensex firms, Maruti, Bajaj Finance, Mahindra & Mahindra, UltraTech Cement, Trent and Bajaj Finserv were among the major gainers. However, Larsen and Toubro, ITC, HCL Technologies and Infosys were the laggards. "There are strong tailwinds for the market with potential to take it higher. Declarations by the prime minister on the next major reforms in GST by Diwali are a big positive. S&P upgrading India's sovereign credit rating is another major positive," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. Prime Minister Narendra Modi on Sunday (August 17, 2025) said the Centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali. Mr. Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort. "The expectation is that most of the goods and services will be in the 5 per cent and 18 per cent tax slabs. Sectors like autos and cement, which are presently in the 28 per cent tax slabs, are expected to benefit. TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news. Insurance companies are also expected to benefit from the GST revision," Vijayakumar added. In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded in positive territory while South Korea's Kospi quoted lower. The U.S. markets ended mostly lower on Friday. Global oil benchmark Brent crude dipped 0.05% to $65.82 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,926.76 crore on Thursday, according to exchange data. On Thursday, the Sensex climbed 57.75 points or 0.07% to settle at 80,597.66. The Nifty rose by 11.95 points or 0.05% to 24,631.30. Equity markets were closed on Friday for Independence Day.
