How to become rich: Have this share to buy while going for trade, say experts

Driven by a 27.8 per cent YoY increase in RPKMs and a 4.5 per cent YoY increase in yields, market experts are predicting a bull run at Interglobe Aviation aka InbdiGo at the Indian indices. They are expecting around 15 per cent gains in the stock in short-term perspective. Speaking on the fundamentals of IndiGo stock Madhukar Ladha, Chief Financial Analyst at HDFC Securities told Zee Business online, "INDIGO reported a 28.1 per cent YoY increase in 3QFY19 revenue to Rs 79.2bn (+7.2 per cent against expectations, driving the beat). Despite revenue growth INDIGO’s adj. EBITDAR plummeted 17.6 per cent YoY to Rs 16.0bn as unit fuel costs remained elevated at Rs 1.58 (+27.3 per cent against 1.4 per cent YoY/QoQ), while unit non-fuel costs at Rs 2.14 increased 3.6 per cent against -6.5 per cent YoY/QoQ. RPAT at Rs 1.9bn came in much ahead of our estimate of a loss of Rs 2.5bn."

Ladha added that traders can buy the stock for the target of Rs 1280 per share mark because the stock looks strong in short-term perspective. The stock closed at Rs 1108 on Wednesday and scaled around 50 rupee on Thursday noon. Expecting profit booking into the strip, experts are advising investors to buy on dips too.

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Commenting on the stock outlook Simi Bhaumik, Technical Equity Analyst (officially registered with the market regulator SEBI) told Zee Business online, "Technically the IndiGo strip looks strong in short-term perspective and can show the Rs 1200 per stock levels in few trading sessions. If the share sustains above Rs 1150 then it would first touch the levels of Rs 1200." On further outlook of the strip post Rs 1200 levels she said that the stock has positive results and after sustaining above the Rs 1200 levels on can expect further rally." 

For those investors who already hold the strip, Bhaumik advised them to maintain a trailing stop loss at Rs 1150. She also advised market investors to buy the IndiGo shares at every dips as the share has strong support below Rs 1100 per share mark.