Sky is the limit! Brokerages see over 25% upside in InterGlobe Aviation shares

InterGlobe Aviation share price target 2024, IndiGo share price target: Following a conference call on March 22, various brokerages have revised their target prices on InterGlobe Aviation, the parent company of IndiGo. Global brokerage Morgan Stanley sees an upside of 25.9 per cent from the previous close. The brokerage has maintained an overweight rating on IndiGo with a target price of Rs 4,145.

In addition, Jefferies upgraded the aviation stock to a hold call from an underperform call. The brokerage has raised the target by Rs 935 per share to Rs 3,435 per share. The global brokerage highlighted the following points in its note:

-Strong capacity growth guidance;

-Grounding impact appears contained;

According to Jefferies, regulating pilot fatigue may still constrain capacity growth and support pricing.

JP Morgan has retained an overweight rating on the stock. The brokerage has raised the target on the aviation stock by Rs 200 per equity share to Rs 3,670 from Rs 3,470.

Moreover, Goldman Sachs and Citi have each maintained a buy call on the scrip. While Goldman Sachs has raised the target to Rs 3,600 from Rs 3,500, Citi has placed the target at Rs 3,700.

Motilal Oswal Financial Services, in its report, highlighted that the Indian aviation market is highly underpenetrated currently, which provides huge room for growth for domestic players. This growth trajectory will be aided by increasing airport infrastructure and capacity additions in terms of aircraft orders, which could make India the third-largest aviation market in the world by CY35.

IndiGo highlighted its three-pillar strategy for growth: affordable fares, lower cancellations and on-time performance. It also seeks to enhance the customer experience and invest in talent. Indigo aims to significantly expand its international network.

"The management has also been making efforts to increase its global brand awareness. The stock is trading at nearly 14x FY26E EPS of INR238 and 7x FY26E EV/EBITDAR. We maintain our neutral rating on the stock with a TP of Rs 3,510 as we believe that IndiGo would have to navigate through various challenges in the near to medium term," the report adds.

IndiGo share price today

IndiGo shares on Tuesday, March 26 rose as much as 4.38 per cent to clock its 52-week high of Rs 3,430.9 on NSE, surpassing the earlier peak of 3,342 touched last week. 

How did IndiGo fare in Q3?

InterGlobe Aviation reported more than doubling of its profit after tax to Rs 2,998.1 crore for the three months ended December 2023, as it remained profitable for the fifth straight quarter.

The company's total income in the third quarter of the current fiscal rose to Rs 20,062.3 crore from Rs 15,410.2 crore in the same period a year ago.

IndiGo share price history

In the last 12 months, IndiGo shares have jumped nearly 80 per cent, outperforming Nifty 50, which has rallied 30 per cent. The company has a market capitalisation of 1,26,851.9 crore, as per the NSE.

The 52-week high and low of the aviation stock are Rs 3,342 and Rs 1,810.65 on the NSE, respectively.

For all other news related to business, politics, tech and auto, visit Zeebiz.com.