GMR Airports Adjusts Evaluation Score Amidst Mixed Financial Performance and High Debt Concerns

GMR Airports, a midcap player in the transport infrastructure sector, has recently undergone an adjustment in its evaluation score. This revision reflects a combination of technical indicators and underlying financial metrics that warrant attention.
The company has reported a positive financial performance for the quarter ending Q1 FY25-26, with net sales reaching Rs 3,205.23 crore, marking a growth rate of 33.43%. Additionally, the return on capital employed (ROCE) for the half-year is noted at 6.89%, and the operating profit to interest ratio stands at 1.23 times, indicating some operational efficiency.

However, the company faces challenges, including a negative book value and a high debt-to-equity ratio averaging 2.56 times. Over the past five years, net sales have grown at an annual rate of 7.82%, while operating profit has seen a decline of 0.73%. The stock has generated a return of -6.88% over the past year, alongside a significant profit drop of 28.9%.

Despite these challenges, GMR Airports has maintained a high institutional holding of 20.19%, reflecting confidence from larger investors.

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