Check Before You Invest : GMR Airports Ltd

Q: Which industry/sub-sector does GMR Airports Ltd belong to?

GMR Airports Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Airport Management Services segment.

Q: Is GMR Airports Ltd a good quality company?

GMR Airports Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is GMR Airports Ltd undervalued or overvalued?

GMR Airports Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 1.92, Historic Median: 1.97. Price to Sales, Current: 32.28, Historic Median: 121.54. EV to EBITDA, Current: 103.97, Historic Median: 251.29

Q: Is GMR Airports Ltd a good buy now?

GMR Airports Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of GMR Airports Ltd?

GMR Airports Ltd revenue growth is 53.7% for FY-2025, which is above its 5-year CAGR of 1.81%, indicating faster growth.

Q: Gross Profit margin of GMR Airports Ltd?

GMR Airports Ltd Gross profit margin which is the profit after deduction of direct costs, is -21.9% for FY-2025, which is above its 5-year median of -86.1%, indicating increasing margins.

Q: Operating Profit Margin of GMR Airports Ltd?

GMR Airports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 54.01% for FY-2025, which is above its 5-year median of 40.26% indicating increasing margins.

Q: Net Profit Margin of GMR Airports Ltd?

GMR Airports Ltd Net Profit Margin is -15.1% for FY-2025, is above its 5-year median of -189.74%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -21.9, Historic Median: -86.1. Operating Profit Margin (%), Current: 54.01, Historic Median: 40.26. Net Profit Margin (%), Current: -15.1, Historic Median: -189.74

Q: Return on Asset of GMR Airports Ltd?

GMR Airports Ltd Return on Asset is -0.25%, which is above its 5-year historical median of -0.83%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of GMR Airports Ltd?

GMR Airports Ltd Return on capital employed is 1.25% for FY-2025, which is above its 5-year historical median of -0.17%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Check Before You Invest : GMR Airports Ltd

Snapshot

Q.1 Which industry/sub-sector does GMR Airports Ltd belong to?

GMR Airports Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Airport Management Services segment.

Q.2 Is GMR Airports Ltd a good quality company?

GMR Airports Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is GMR Airports Ltd undervalued or overvalued?

GMR Airports Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	-
Price to Book	1.92	1.97
Price to Sales	32.28	121.54
EV to EBITDA	103.97	251.29

Q.4 Is GMR Airports Ltd a good buy now?

GMR Airports Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of GMR Airports Ltd?

GMR Airports Ltd revenue growth is 53.7% for FY-2025, which is above its 5-year CAGR of 1.81%, indicating faster growth.

Q.2 Gross Profit margin of GMR Airports Ltd?

GMR Airports Ltd Gross profit margin which is the profit after deduction of direct costs, is -21.9% for FY-2025, which is above its 5-year median of -86.1%, indicating increasing margins.

Q.3 Operating Profit Margin of GMR Airports Ltd?

GMR Airports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 54.01% for FY-2025, which is above its 5-year median of 40.26% indicating increasing margins.

Q.4 Net Profit Margin of GMR Airports Ltd?

GMR Airports Ltd Net Profit Margin is -15.1% for FY-2025, is above its 5-year median of -189.74%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-21.9	-86.1
Operating Profit Margin (%)	54.01	40.26
Net Profit Margin (%)	-15.1	-189.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GMR Airports Ltd?

GMR Airports Ltd Return on Asset is -0.25%, which is above its 5-year historical median of -0.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of GMR Airports Ltd?

GMR Airports Ltd Return on capital employed is 1.25% for FY-2025, which is above its 5-year historical median of -0.17%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of GMR Airports Ltd?

GMR Airports Ltd Return on equity is -0.36% for FY-2025, which is above its 5-year historical median of -1.25%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of GMR Airports Ltd?

GMR Airports Ltd Cash conversion cycle is -23 days, above its 5-year historical median of -119 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.02	0.02
ROE (%)	-0.36	-1.25
ROCE (%)	1.25	-0.17
Cash Conversion Cycle	-23 days	-119 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of GMR Airports Ltd?

GMR Airports Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of GMR Airports Ltd?

GMR Airports Ltd Debt to cash flow from operations is 20.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GMR Airports Ltd?

Q.1 Promoter shareholding and pledge status of GMR Airports Ltd?

Promoters hold 66.33% of the GMR Airports Ltd, with 15.49% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does GMR Airports Ltd performance compare with that of its Peers?

Q.1 Revenue growth of GMR Airports Ltd vs industry peers?

GMR Airports Ltd revenue CAGR is 1.81%, compared to the industry median CAGR of 1.81%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	53.7	1.8
Gross Profit Growth (%)	0	-
Operating Profit Growth (%)	96.5	8.9
Net Profit Growth (%)	0	-

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.02	0.01
ROE (%)	-0.36	-1.25
ROCE (%)	1.25	-0.17
Cash Conversion Cycle (days)	-22.75	-119

Valuation & price assessment

Q.1 Stock return of GMR Airports Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	23.9%	29.5%	28.5%	8.2%

Q.2 Valuation ratios of GMR Airports Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	242.60
Price to Book	1.92	1.97	6.23
Price to Sales	32.28	121.54	62.28
EV to EBITDA	103.97	251.29	137.95

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Check Before You Invest : GMR Airports Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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