The shares of the leading airline stock gained an intraday of around 2 percent to an all-time high price of Rs 3,129.50 apiece after UBS revised the target price for an upside of 19%.
InterGlobe Aviation Limited is engaged in aviation management, hotel development, and management services. The company also works in passenger and cargo management and also offers travel distribution services, such as itineraries and domestic.
On Monday, the company’s shares were trading at Rs 3,107 a share, up 1.14 percent from the previous close price, the company has a market capitalization of Rs 1,19,922 crores.
The company’s revenue has significantly increased by 20 percent from Rs 12,498 crores during Q2FY23 to Rs 14,944 crores in Q2FY24. For the same period, Net profit has increased from loss to profit. i.e., from a loss of Rs 1,585 crore to Rs 188 crore.
Having a positive outlook for the company, UBS has revised the ‘Buy’ tag to the company with a target price of Rs 3,700 indicating an upside of 19 percent as compared to the current price levels.
The brokerage has revised the target price due to continued new aircraft additions by the company despite the supply crisis and faster-than-industry growth.
The company has entered into agreements to wet-leasing (temporary lease with crew, maintenance, and insurance) 11 aircraft in Q3 and the company is planning to add 10 aircraft in the fourth quarter of the financial year.
UBS said that upside risks to yields on resilient demand and lower crude prices are supporting the company’s near-term margins.
InterGlobe Aviation Limited shares have gained 16 percent in the last six months and 48 percent in a year.
The company has a fleet of over 330 aircraft, and the company connects people across the globe to a network of over 110 destinations worldwide. IndiGo has the largest market share at 63.3 percent, followed by Air India and Vistara.
Written by Omkar Chitnis
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