Rajiv Jain of GQG Partners is betting big on India's airports story. He is doing that through two stocks, Adani Enterprises, the flagship company of the Adani Group, which owns and operates a network of airports across the country, and through GMR Airports, where it acquired a stake in December last year.
In an exclusive interaction with CNBC-TV18, Jain said that the bet on airports is not only a bet on passenger growth but also on the real estate development around that.
"We feel that there are meaningful upsides in these assets," Jain said, adding that airlines come and go but airports, if they are reasonably well run, have a very long tail and should not only have stable growth but also trade at a higher multiple on a longer term basis.
Jain also explained that he bet on GMR Airports, one of the largest airport operators in the world, as the Delhi Airport itself could have a value of a multiple of $10 billion.
With regards to the Adani airports bet, Jain said that Adani currently owns six airports and the Navi Mumbai airport will be done by the end of this year. "It (Navi Mumbai Airport) will become the largest airport as such with passenger growth running in the mid-teens," Jain said.
"There is a lot of ability to monetise, not only the passenger but the revenue that can be generated in the ecosystem," he added.
Jain mentioned that when he first acquired stake in Adani Enterprises in March last year, their thought process was that the Mumbai airport itself is more valuable than the entire company. "The copper business is coming on line in a few months, that could be a billion-dollar-plus EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) alone. So we thought we were getting everything else for free," he explained.
(Edited by : Hormaz Fatakia)
First Published: Feb 21, 2024 9:40 AM IST