GMR Airports Infra shares jump 5% to hit 52-week high; is more steam left?

Shares of GMR Airports Infrastructure Ltd extended their gains during the early trading session on Monday. The company has been at the radar of traders following the acquisition of a significant stake in the company by GQG Partners over last week.

GQG Partners Emerging Markets Equity Fund, and Goldman Sachs Trust II via Goldman Sachs GQG Partners International Opportunities Fund bought 28.29 crore equity shares or 4.7 per cent stake in GMR Airports Infrastructure via open market transactions amounting to Rs 1,671.5 crore, according to exchange data

Nomura India Investment Fund Mother Fund also purchased 6.25 crore equity shares or 1 per cent stake in GMR, and Stichting Depositary APG Emerging Markets Equity Pool picked 3.4 crore shares or 0.56 per cent stake in GMR Airports at an average price of Rs 58.20 per share.

Following the update, shares of GMR Airports Infrastructure surged about 5 per cent to Rs 72.30 on Monday, hitting its new 52-week high, with a total market capitalization of more than 43,000 crore. The scrip had settled at Rs 68.89 in the previous trading session on Friday.

Shares of GMR Airport Infrastructure have surged more than 100 per cent from its 52-week low at Rs 36, hit in January 2023. The stock has surged about 25 per cent in the last one month, while it is up 70 per cent in the last six months. It has delivered a return of 350 per cent in the last five years.

GMR has been expanding its terminals in Delhi and Hyderabad with a capex of Rs 17,000 crore, thus increasing the regulated asset base by 2 times. The terminal capacity is likely to increase to 100 million passengers in Delhi and 34 million passengers in Hyderabad by FY24E-end, said Ashika Group in its report.

GMR Airports Infra is the largest airport operator in the country with stake in two of the largest airports, Delhi and Hyderabad, with concession life of 45 years. Delhi and Hyderabad handled 66 million passengers and 21 million passengers, respectively, with a market share of about 27 per cent in FY23. Also, it has just commenced operations in Goa which is another lucrative destination

On a technical basis, the stock continues to form higher peaks and troughs in all time frames. It has registered a breakout above the last two weeks consolidation range of (59-64), thus offering fresh entry opportunity, said Ashika.

"The stock has formed a higher base around Rs 60-levels being the confluence of the rising 20days EMA and the trendline support joining the lows since June 2023. RSI remains in a strong uptrend as it is rebounding, taking support at its nine periods average thus validating positive bias. Hence one can expect the stock to head towards Rs 78 in near term," it added.

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