The shares of this leading airline firm gained around 2.5% reaching an intraday high price of ₹4,405.05 per share on Friday after Kotak Institutional Equities gave a buy call with a potential upside of 30%.
At 1:25 p.m., InterGlobe Aviation Limited Ltd shares were trading at ₹4,397.10 per share, down 2.28% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹1,69,719 crore.
The company is actively involved in passenger and cargo management, and also provides travel distribution services such as itineraries and domestic travel arrangements. As of FY24, InterGlobe Aviation Limited commands a commanding 57.5 percent market share in domestic passenger airlines.
Additionally, InterGlobe Aviation Limited operates in various sectors including aviation management, hotel development, and management services.
InterGlobe Aviation Limited recently announced impressive financial results for Q4FY24, boasting a consolidated net profit of ₹1,894 crores, a remarkable 107% increase from the corresponding quarter of the previous year.
The surge in profitability was supported by a substantial rise in total revenue for the same period, which amounted to ₹17,825 crores, marking a significant 26% uptick compared to the previous year.
Kotak Institutional Equities raised its price target on InterGlobe Aviation for a target price to Rs 5,700 from Rs 5,100 while maintaining its buy rating, with a 30 percent upside from the current price of Rs 4,382.80.
The brokerage said there is a chance most of Indigo’s competitors would see another year of stiff losses in FY25. Kotak said this suggests higher losses for challengers to IndiGo since the airline operator reported a PAT of $1 billion in FY24.
Further, IndiGo expects a 12 percent growth in total capacity, measured in available seat kilometers (ASK) in FY25.
Kotak raised its yield estimates by 1-2 percent for FY26-27, while also lowering its assumptions on fuel costs, as a result of changes in jet fuel spreads. Therefore, if the industry raises prices in excess of cost inflation, it will only serve to improve IndiGo’s profitability from its current levels.
Last Month, Morgan Stanley issued an ‘overweight’ rating on IndiGo, increasing the target price to ₹5,142 per share. Based on the company’s significant upcoming changes for IndiGo, including the launch of loyalty programs and business class services, as well as plans for long-haul international flights.
As of March 2024, IndiGo’s fleet consists of 367 aircraft, with 31 owned or on finance lease, 323 on operating lease, and 13 on damp lease.
As of March 31, 2024, IndiGo’s total cash balance was 34,737.5 crore, which included 20,823 crore in free cash and 13,914.5 crore in restricted cash.
InterGlobe Aviation Limited shares have surged 52% over the past six months and 81% over the past 12 months.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
