GMR Airports Ltd.
ISIN: INE776C01039 • Market Cap: ₹1.08 Lakh Cr
The 5-Pillar Quality Audit for GMR Airports Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (38.8%), Return on Capital Employed (5.8%), and equity compounding (15.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is -15.03 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (32.6%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 225.70 vs PEG of 4.23 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.2%, backed by 26.9% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: -15.03)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 32.6%)
Revenue has expanded at 32.6% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (26.9%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.9%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 5.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 225.70)
A steep valuation multiple of 225.70 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking GMRAIRPORT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 73/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Services Sector Peer Comparison
Compare GMRAIRPORT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| GMR Airports Ltd. (GMRAIRPORT)Current | 73/100 | ₹1.08 Lakh Cr | 225.70 | 5.8% | -15.03 | — |
| Adani Ports and Special Economic Zone Ltd. (ADANIPORTS) | 71/100 | ₹3.87 Lakh Cr | 29.51 | 11.6% | 0.57 | View |
| InterGlobe Aviation Ltd. (INDIGO) | 53/100 | ₹2.00 Lakh Cr | — | 5.7% | 0.26 | View |
| JSW Infrastructure Ltd. (JSWINFRA) | 68/100 | ₹76,925 Cr | 51.79 | 13.1% | 0.59 | View |
| Container Corporation of India Ltd. (CONCOR) | 66/100 | ₹39,147 Cr | 31.52 | 13.5% | 0.00 | View |
| Delhivery Ltd. (DELHIVERY) | 61/100 | ₹33,563 Cr | 358.82 | 2.6% | 0.00 | View |
Frequently Asked Questions: GMR Airports Ltd.
Q:What is the 5-Pillar Fundamental Score for GMR Airports Ltd. (GMRAIRPORT)?
GMR Airports Ltd. has a RupeeTools Fundamental Score of 73/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (67/100), Financial Health (84/100), Growth (99/100), Valuation (18/100), and Ownership Quality (82/100).
Q:Is GMRAIRPORT fundamentally strong for long-term investment?
Yes, GMRAIRPORT exhibits solid fundamental strength with a 73/100 score, driven by a return on equity of 15.7% and a debt-to-equity ratio of -15.03.
Q:Does GMRAIRPORT pass the Coffee Can Investing filter?
No. GMRAIRPORT does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GMRAIRPORT compare against other Services peers?
Within India's Services sector, GMRAIRPORT trades at a P/E of 225.70 and generates an ROCE of 5.8%. Compare its 5-Pillar score of 73/100 against top sector peers like Adani Ports and Special Economic Zone Ltd. (71/100), InterGlobe Aviation Ltd. (53/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.