GMR Infra is in the business of development of infrastructure projects. It operates airports in Delhi and Hyderabad. Through this concession model, GMR lets out space to retailers for business on a revenuesharing basis. The company also has power plants totalling 725 MW and roads totalling 442 kms that are operational. Besides, it has 2.8 GW of power projects under construction. GMR also owns a stake in Sabiha Gokcen Airport, Istanbul. It recently sold its stake in InterGen for $1.23 billion. This cash would partly help the company deleverage its balance sheet while the rest of the funds would be invested in its various projects. Its major growth driver is the projected cash flow from the Delhi and Hyderabad airports including realty development of 40-45 acres close to the Delhi airport.The Hyderabad airport business is also expected to turn profitable this quarter, thanks to an increase in airport development fee and passenger traffic. At a price-tobook value of 2.8, the stock is fairly valued with a limited upside.
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