Since a very long time, a new airport has not been started in India. We constantly crib about the lack of infrastructure facilities in the country and in these circumstances; it is indeed big news about the swanky new airport getting all set for commercial operations in India.
The launch date of Bangalore airport, as we all know, has been delayed and now we hear that, even while Mrs. Sonia Gandhi was unveiling the new world class airport at Hyderabad, news came in that the launch of its commercial operations might get delayed and it might not take off as per the “earlier than scheduled” target.
Now, we at premiuminvestments.in have been very gung-ho about GMR Infra and that very fact that it was the company responsible for developing the airports in Hyderabad and Delhi made it one of our top most recommendations. And now, with the markets falling everyday, coupled with the news of the delay in the launch of the commercial operations of Hyderabad airport, investors are asking whether it is time to re-rate our stand on GMR Infra.
Well, we would now like to go on record to say that we still very strongly believe that GMR infra continues to hold tremendous potential and this delay in the launch date of the airport is just a minor glitch. The issues over the delay is happening are not very major, they all are small blips, which will soon get erased out.
The delay in the Hyderabad airport is on account of “operational reasons”. Now this includes, poor connection between the new airport and the Hyderabad city, fleet of buses to shuttle employees between the airport and the city not yet at full strength, presence of a big drain at about 105 feet from the airport.
Another issue is that the airline operators have also asked for some more time to fully shift their operations from the old to the new airport. There is major worry over the increase in the ground handling charges and the imposition of the new central infrastructure fees, which is expected to hit the very purpose of the Budget airlines to offer tickets at low costs. Surely, it is going to increase the cost of traveling from Hyderabad and Bangalore airports but then, just as there is always this major resistance to any cost increase or imposition of new tolls or taxes, which eventually does get passed and people get used to paying, this too shall soon pass.
We feel all these glitches are not ones which will jeopardise the entire airport, simply because we cannot afford to do so. These issues are all workable and as GMR has said, these are “operational issues” which were not in control of GMR.
So we once again reiterate that we maintain our long term bullishness in GMR Infra and there is no way in which we think the stock requires any kind of re-rating or downgrading from the present levels. The prospects of the company continues to remain strong and with the company soon expected to bid for the development of an East European airport also, the company is no longer just an Indian company, it is soon morphing into a truly global “airport” company.
Investors who have purchased GMR Infra, are advised to stay invested. In today’s general market conditions, almost all the stocks are falling across the board. This is a good long term stock.
The launch date of Bangalore airport, as we all know, has been delayed and now we hear that, even while Mrs. Sonia Gandhi was unveiling the new world class airport at Hyderabad, news came in that the launch of its commercial operations might get delayed and it might not take off as per the “earlier than scheduled” target.
Now, we at premiuminvestments.in have been very gung-ho about GMR Infra and that very fact that it was the company responsible for developing the airports in Hyderabad and Delhi made it one of our top most recommendations. And now, with the markets falling everyday, coupled with the news of the delay in the launch of the commercial operations of Hyderabad airport, investors are asking whether it is time to re-rate our stand on GMR Infra.
Well, we would now like to go on record to say that we still very strongly believe that GMR infra continues to hold tremendous potential and this delay in the launch date of the airport is just a minor glitch. The issues over the delay is happening are not very major, they all are small blips, which will soon get erased out.
The delay in the Hyderabad airport is on account of “operational reasons”. Now this includes, poor connection between the new airport and the Hyderabad city, fleet of buses to shuttle employees between the airport and the city not yet at full strength, presence of a big drain at about 105 feet from the airport.
Another issue is that the airline operators have also asked for some more time to fully shift their operations from the old to the new airport. There is major worry over the increase in the ground handling charges and the imposition of the new central infrastructure fees, which is expected to hit the very purpose of the Budget airlines to offer tickets at low costs. Surely, it is going to increase the cost of traveling from Hyderabad and Bangalore airports but then, just as there is always this major resistance to any cost increase or imposition of new tolls or taxes, which eventually does get passed and people get used to paying, this too shall soon pass.
We feel all these glitches are not ones which will jeopardise the entire airport, simply because we cannot afford to do so. These issues are all workable and as GMR has said, these are “operational issues” which were not in control of GMR.
So we once again reiterate that we maintain our long term bullishness in GMR Infra and there is no way in which we think the stock requires any kind of re-rating or downgrading from the present levels. The prospects of the company continues to remain strong and with the company soon expected to bid for the development of an East European airport also, the company is no longer just an Indian company, it is soon morphing into a truly global “airport” company.
Investors who have purchased GMR Infra, are advised to stay invested. In today’s general market conditions, almost all the stocks are falling across the board. This is a good long term stock.
By SP Tulsian
