GMR Infra a great buy at the current levels: Ambareesh Baliga

In an exclusive interview with ET Now, Ambareesh Baliga, VP Karvy Stock Broking Ltd, gave his views on GMR Infra. Excerpts:

Do you still believe GMR Infra a good buy and can be held on? FDC, what do you make out of this stock?

It's a bit difficult for me to comment on GMR. If I am not wrong I think I had recommended anywhere between 56 to 66-68. I do not think I recommend above 70 but my recommendation still stands. We still have that price target of 90 plus and possibly 120 plus over the next 1-1.5 years. Again the rationale is very clear, one has to actually go and see the new T3 terminal which has opened recently. It was opened on 3rd July and that will clearly show that the expertise which GMR has in airports.

One of the reasons why there was pressure on this stock over the last couple of months was clearly over the balance sheet issues. There are fears that whether they would be able to raise money or not. At the same time, the other fear was the cost overrun on the airport, the Delhi Airport, it was expected to be about 10,000 crore, there is cost overrun of around 20% this is around 12,000 but I do not think this really matters much. If we actually look at the asset which they have, they can sell approximately 250 acres around the Delhi Airport where each acres going for a 100 crore and they have just about sold around 35-40 acres. They still have around 220 acres more to sell which I think they would over the next at least 1-1.5 years. So clearly they are sitting on a jackpot of nearly 22,000 crore and against that if you have a 2000 crore like cost overrun which is hardly anything. So I think the issue is only for short term. If you are looking at 6 month plus, I think it is still a great buy at the current levels.