IDBI Capital initiates coverage on GMR Infra with 'buy'

MUMBAI: IDBI Capital Markets has initiated coverage on GMR Infrastructure with a 'buy' rating and a target price of Rs 32.

"With a major presence across Indian airports, power plants and roads, GMRI stands as a testament to world-class conglomerate. Yet like many, the path to heights was blighted by systemic issues. Worse, saddled with debt, the financials were caught flat-footed. Not anymore," said IDBI Capital.

With stake sale to Tenaga, implying $1 billionn valuation for GMR Infrastructure energy, the days are brighter ahead, the brokerage said.


Moreover, with TDSAT ruling due, the re-rating of airport assets and subsequent value unlocking is on cards, said IDBI Capital. The monetization of land bank is a sweetener, it added.