The Indian stock market has been buzzing with activity lately, with the benchmark indices Sensex and Nifty reaching record highs. Amidst all this, one stock that caught the attention of investors is GMR Airports, which saw a 3.5 per cent appreciation in its share price on Thursday. This surge in price has not only strengthened the support band of ₹85.50-86.50 but has also moved above the 21- and 50-day moving averages. The chart clearly indicates a positive trend since March, with the stock forming higher lows. Let us delve deeper into the factors that have contributed to this positive movement.
GMR Airports, a subsidiary of GMR Infrastructure Ltd, is one of the leading airport developers and operators in the country, with a strong presence in Delhi, Hyderabad, and Cebu in the Philippines. The company has been making significant strides in the industry, and this is evident in its financial results. In the first quarter of FY22, GMR Airports reported a 68 per cent year-on-year increase in its consolidated net profit at ₹252 crore, owing to a sharp recovery in passenger traffic.
The recent surge in GMR Airport’s stock price can be attributed to its impressive quarterly results, which have surpassed market expectations. The company’s revenue from operations also witnessed a significant jump of 105 per cent, reaching ₹1,348 crore in the first quarter of FY22. This robust performance is a testament to GMR’s strong business fundamentals and its ability to navigate through the challenging times caused by the pandemic.
Moreover, GMR Airports has been actively pursuing growth opportunities, which have further bolstered investors’ confidence in the company. In June, GMR Airports signed a concession agreement with the state government of Goa for the development and operation of a greenfield airport at Mopa. This move is expected to boost the company’s revenue streams in the coming years, further adding to its already solid portfolio.
Another factor that has contributed to the positive sentiment around GMR Airports is the surge in passenger traffic at its airports. With the easing of travel restrictions and the vaccination drive gaining momentum, people are gradually resuming air travel, leading to a surge in passenger traffic. In July, GMR Airports’ Delhi and Hyderabad airports recorded a 45 per cent and 50 per cent year-on-year increase in passenger traffic, respectively. This increase in passenger traffic bodes well for the company’s financial performance in the coming quarters.
Furthermore, the government’s push towards the development of airport infrastructure in the country has created a favorable outlook for airport operators like GMR Airports. The government’s plan to privatize several airports across the country presents a significant growth opportunity for the company. GMR Airports, with its vast experience and strong track record, is well-positioned to capitalize on these opportunities and propel its growth trajectory.
In conclusion, the positive developments at GMR Airports have led to a surge in its share price, and the trend continues to be positive. The company’s robust quarterly results, its pursuit of growth opportunities, and the surge in passenger traffic at its airports have all contributed to this positive movement. As the aviation industry continues to recover, GMR Airports is expected to witness sustained growth, making it an attractive investment option for investors. With its strong business fundamentals and a promising future ahead, GMR Airports is definitely a stock to watch out for in the Indian stock market.
