Shares of this leading airline company in India gained 2.6 percent after the company reported robust growth in Q2FY24, UBS also gave buy rating for the company at the target price of Rs. 3,000 per share.
At 10:05 6th november, shares of Interglobe aviation were trading at Rs. 2,575.70 per share, up by 2.65 percent from previous closing price of Rs. 2,509.20 per share. The company has a market capitalization of Rs. 96,773 crores.
Such bullish stock price movements were observed after the company reported 20.6 percent revenue growth in Q2FY24 compared to the same quarter of previous financial year. Revenue went from Rs. 12,852 crores in Q2FY23 to Rs. 15,502.9 crores in Q2FY24. Moreover, the company generated a profit of Rs. 187.85 crores in this quarter compared to a loss of Rs.1,580 crores in the same quarter of previous financial year.
In addition,UBS has reconfirmed its ‘buy’ rating for IndiGo, setting a target price of ₹3,000 per share which is an upside of almost 16.5 percent. The brokerage noted that the airline delivered a strong performance in a seasonally challenging second quarter. Furthermore, UBS pointed out that IndiGo’s available seat per kilometre (ASK) would face a substantial impact starting from the fourth quarter.
The company’s promoters possess roughly 63.24 percent of the shares, while the foreign institutional investors (FIIs) own 20.29 percent with domestic institutional investors (DIIs) holding about 13.32 percent leaving the remaining 3.15 percent in the hands of the public.
InterGlobe Aviation Limited (Indigo) is an Indian budget airline with its main offices located in Gurgaon, Haryana, India. It holds the position of being the biggest airline in India in terms of the number of passengers it transports and the size of its aircraft fleet. As of July 2023, it commands a significant 63.4% share of the domestic aviation market.
Written by: Vinit Israni
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