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 10-year financial track record.

Q.3 Is GMR Airports Ltd undervalued or overvalued?

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

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

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 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.3 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.4 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.5 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	0.02	0.02
ROE	-0.36	-1.25
ROCE	1.25	-0.17
Cash Conversion Cycle	-23 days	-119 days

Q.6 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.7 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.8 Net Profit Margin of GMR Airports Ltd?

GMR Airports Ltd Net Profit Margin is -15.1% for FY-2025, is above with 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

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

GMR Airports Ltd Debt-to-Equity ratio is 0.16, which is in line with the industry average of 0.16, indicating similar to 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

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)

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	0.02	0.02
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 23.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	23.3%	33.1%	30%	15.3%

Q.3 Valuation ratios of GMR Airports Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	450.16	242.63
Price to Book	1.97	1.97	6.23
Price to Sales	33.08	122.61	62.29
EV to EBITDA	106.3	251.53	137.97

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