The shares of the leading aviation company have fallen up to 3 percent after the company’s promoter may offload its equity share valued at Rs 10,300 crore.
InterGlobe Aviation Ltd has a market capitalization of Rs 1.83 lakh crore, the shares were trading at Rs 4,754.60 per share, decreasing around 2 percent as compared to the previous closing price of Rs 4,859.20 apiece.
Reason For Fall:-
Today, the company shares have seen bearish movement after InterGlobe Aviation Ltd’s co-founder and promoter, Rakesh Gangwal, may offload its 5.5 percent equity share valued at Rs 10,300 crore and this deal is likely to be executed at an average price of Rs 4,593 per share.
As of June 2024, Rakesh Gangwal, a promoter of the company holds 2.2 crore equity shares which is equivalent to 5.89 percent in the company while his wife Shobha Gangwal, and JPMorgan Trust of Delaware hold 7.47 crore equity shares representing 13.49 percent share in Indigo.
Brokerage Recommendations:-
Jefferies has raised the target price to Rs 5,225 apiece, indicating a potential upside of 10 percent, citing strong operating performance which it said has consistently surprised in the last 12-18 months. Also, added, the precarious industry capacity has kept the airline’s yields healthy.
Financial Performance:-
Looking forward to the company’s financial performance, revenue increased by 17 percent from Rs 16,683 crore in Q1FY24 to Rs 19,571 crore in Q1FY25. During the same period, net profit decreased by 12 percent, from Rs 3,087 crore to Rs 2,727 crore.
Fleet count and capacity:-
As of March 2024, IndiGo’s fleet consists of 367 aircraft: 31 owned or on finance lease, 323 on operational lease, and 13 on damp lease. In fiscal year 2023-24, the firm had a PAT margin of 11.9%, up from -0.6% the previous year.
IndiGo boosted capacity by 14.4% to 34.8 billion, while passenger numbers grew by 14.0% to 26.7 million. The yield climbed by 7.0% to 5.19 and the load factor increased by 2.1 percentage points to 86.3%.
Company profile:-
InterGlobe Aviation Limited (IndiGo) offers air transportation and ground handling services, including passenger and cargo services, in-flight sales, ground handling business, and airport-linked services.
Written by:- Abhishek Singh
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