GMR Airports shares gain 2% after JM Financial retains Buy rating; sees up to 24% upside

JM Financial has maintained its Buy rating on GMR Airports with a target price of Rs 115, implying further upside of up to 24% from current levels. Shares of GMR Airports rose around 2% to Rs 94.23 on Thursday.

The brokerage said passenger traffic remained subdued in August 2026, with GMR reporting around 1% year-on-year growth, including the recently added Nagpur and Bhogapuram airports. On an organic basis, however, passenger traffic declined 2.6% YoY, primarily due to continued weakness at GHIAL, where traffic fell 11.5%.

At GMR’s key domestic airports — DIAL, GHIAL and GIAL — passenger traffic declined 2.4% YoY in August. Domestic passenger traffic dropped nearly 4%, with GHIAL accounting for much of the weakness, while international passenger traffic edged up 1.4%.


JM Financial expects passenger traffic to remain under pressure through November 2026, partly due to the impact of the West Asia crisis. However, the brokerage expects growth to improve from December 2026 as favourable base effects kick in following the IndiGo airline crisis in late 2025.

The brokerage also noted that resilience in international traffic could support non-aeronautical revenues, helping offset some of the weakness in passenger volumes.

JM Financial values GMR’s operational airports in India at its long-term average 12-month forward EV/EBITDA multiple of 21x. Including the value of monetisable airport land, including the upcoming Bhogapuram airport and Medan airport, the brokerage arrived at a target price of Rs 115.

The brokerage acknowledged that near-term pressure on the stock could persist amid muted passenger traffic. However, with GMR Airports shares having declined around 8% over the past month, JM Financial believes much of the near-term traffic weakness is already reflected in the stock price. The brokerage therefore retained its Buy rating, citing an improved risk-reward profile at current levels.

Share Price and Technical Indicators

GMR Infrastructure’s stock has remained subdued in recent weeks, declining around 7% over the past month. The company currently commands a market capitalisation of approximately Rs 99,613 crore.

On the valuation front, GMR Infrastructure trades at a price-to-earnings (P/E) ratio of 205.31, while its price-to-sales (P/S) ratio stands at 6.04.

On the technical front, the 14-day Relative Strength Index (RSI) stands at around 32.4, indicating that the stock is approaching the oversold zone. Typically, an RSI below 30 is considered oversold, while a reading above 70 is viewed as overbought.

Disclaimer: This article has been written by Ritesh Presswala, who is not a SEBI-registered Research Analyst or an Investment Adviser. Ritesh Presswala and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here