IndiGo shares in focus after Goldman Sachs reiterates 'buy' rating

Shares of Interglobe Aviation- the parent company of IndiGo swung between gains and losses in Thursday's (January 2) trade after global brokerage Goldman Sachs has continued with a 'buy' rating on the counter with a target of Rs 4,800 per share- implying potential upside of nearly 5 per cent from the last close of Rs 4,591.

At around 10:47 am, shares traded weak by over 1 per cent or Rs 48.05 at 4,543.4 per share on the BSE. In early trade, the stock at the day's high zoomed up to Rs 4,635.95 apiece.

The brokerage for the quarter ended December expects healthy Px/ ASK (Available seat kilometers) growth while the cost pressures are likely to keep margins flat year-on-year (YoY) during the quarter.

Also, the global brokerage anticipates an improvement in the airline's domestic performance in Q3,  with RPK/px growth of around 12 per cent YoY and market share augmenting by around 100bps sequentially.

Furthermore, the passenger load factor or PLF is seen to improve by 150 basis points YoY, while domestic yield is anticipated to be flattish on-year.

Q2FY25 results

For the September quarter, the airline major reported a net loss of Rs 987 crore, while the revenue from operations jumped 13.55 per cent YoY to Rs 16,969.6 crore in the quarter ended 30 September 2024.  Total income in Q2 FY25 was at Rs 17,759 crore, up 14.55 per cent from Rs 15,502.9 crore reported in Q2 FY24.

Durning the quarter, passenger ticket revenues were Rs 143,59.2 crore, recording an increase of 9.9 per cent and ancillary revenues were Rs 1,875 crore, up 20.9 per cent compared to the same period last year.

IndiGo share price performance 

In the last one year IndiGo shares climbed over 54 per cent, with its 52-week low and 52-week high prices at Rs 2,847 and Rs 5,035 per share.