Nomura Financial Advisory maintains ‘reduce’ for GMR Infrastructure

CMP: Rs 146.75

Target price: Rs 94

Nomura Financial Advisory has maintained its ���reduce��� rating for GMR Infrastructure while raising its price target for the stock to Rs 94 from Rs 62. ���On an easing liquidity scenario that reflects in lower discount rates and higher real-estate value for the Delhi airport land and also factoring in value from InterGen and higher merchant tariff, we revise GMRI���s target price to INR94,��� the foreign brokerage said in a report.

Nomura, however, notes the duty-free retail contract awarded at the Delhi airport is sharply below street expectations. ���While we believe several execution challenges relating to land and fuel tie-up remain for developmental projects, we factor them in our bullcase scenario (INR 126/share), which still suggests about a 20% downside on the stock,��� it said.