Interglobe Aviation (INDIGO) Share Price Target Forecast 2022, 2023, 2025, 2030

20 DECEMBER 2021

Prabhudas Lilladher has InterGlobe Aviation with a target price of Rs 1950.

In a research note dated December 16, 2021, Prabhudas Lilladher advised a hold rating for InterGlobe Aviation with a target price of Rs 1950.

We spoke with IndiGo about their long-term strategy of responsibly boosting unit revenues while maintaining a constant emphasis on lowering unit expenses. IndiGo has continued to pursue and develop multiple revenue streams in the aftermath of the pandemic, including 1) strengthening the domestic network through regional expansion (Fleet of 30+ ATRs), 2) expanding the international network with longer-range aircraft (A321neo; A321 XLRs – mid 2024), and 3) freighter operations. IndiGo is attempting to reinvent its offering in order to connect it with consumer demands as stage lengths increase.

However, given the probable rise in competition intensity as new companies enter the market, IndiGo remains committed to being the lowest-cost operator by 1) sweating assets more effectively. 2) a larger number of seats 3) Long-term relationships with lessors (which were bolstered by the epidemic) and 4) fleet renewal with the fuel-efficient A320neo family. In the airline business, we continue to favour IndiGo and believe it will emerge stronger after Covid due to its 1) better financial sheet (Rs63 billion in free cash), 2) industry-leading cost structure, and 3) solid management team.

Outlook

We arrive at a target price of Rs1,950/ after valuing the stock at 9x Sep23 adj. EV/EBITDAR. However, we feel CMP bakes in the majority of positives, and with the short term uncertain owing to the potential spread of the Omicron version, we advise waiting for better entry positions. Hold on to HOLD.

Moneycontrol.com is the source for this information.


12 November 2021

InterGlobe Aviation rises 6% on strong volume, approaching a new high.

In Friday’s intra-day trade on the BSE, shares of InterGlobe Aviation (IndiGo), which operates India’s largest airline, rose 6% to Rs 2,268 after roughly 1% of the aviation company’s entire stock changed hands. The stock was trading around its all-time high of Rs 2,306.15, which it reached on September 22, 2021.

The stock was up 5.4 percent at Rs 2,263 at 10:34 a.m., compared to a 0.28 percent advance in the S&P BSE Sensex. According to BSE statistics, almost 4.28 million equity shares representing 1.1 percent of InterGlobe Aviation’s total equity changed hands. The names of the purchasers and sellers could not be determined right away.

The stock has outpaced the market in the last three months, rising 35% on expectations of increased capacity in terms of Available Seat Kilometers (ASKs) or Available Seat Miles (ASM). During the same time period, the S&P BSE Sensex increased by 9%.

InterGlobe Aviation reported a quarterly loss of Rs 1,436 crore for the July-September quarter (Q2FY22), as increasing fuel costs outweighed a rise in travel demand. On a quarterly basis, however, the net loss shrank from Rs 3,174 crore in Q1FY22. The company’s EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent expenses) margin fell to 6.1 percent during the quarter, down from 14.9 percent the year before.

However, the management expects capacity in terms of ASKs to rise by roughly 40% in October-December (Q3FY22) compared to Q2FY22 and around 45 percent compared to Q2FY21.

IndiGo is confident about the 2H demand situation, concentrating on deploying more capacity in a reasonable manner, with business travel projected to take up after Diwali (currently at 50% of pre-covid levels) and ongoing momentum from Tier 2/3 cities. However, analysts at Prabhudas Lilladher stated in a result update that the increasing crude environment remains a concern.

Given its excellent financial sheet (Rs 6,300 crore free cash) with the ability to further strengthen by Rs 3,000 crore via QIP, industry-leading cost structure, and solid management team, the brokerage company believes IndiGo would emerge stronger following Covid.

business-standard.com is the source for this information.


29 OCTOBER 2021

Should investors buy, sell, or keep Interglobe Aviation after the second-quarter results?

The stock of Interglobe Aviation plummeted 7% in early trading on October 29, a day after the business released its September quarter earnings. Interglobe Aviation lost Rs 1,435.7 crore in the second quarter of FY22, compared to Rs 1,194.8 crore the previous quarter.

The company’s revenue was Rs 5,608 crore, up from Rs 2,741 crore year on year.

EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent charges) fell 16.6% to Rs 340.8 crore, with a 6.1 percent margin.

After the September quarter earnings, here’s what brokerages had to say about the stock and the company:

Credit Suisse 

Because of its fortress positioning and structural cash flows, the research firm has assigned the company an outperform rating. The target price has remained unchanged at Rs 2,700 per share.

Goldman Sachs

The stock has a neutral rating from Goldman Sachs, with a target price of Rs 2,070. The Q2 yields surprised favourably, but rising expenses neutralised the majority of it, resulting in net earnings that were largely in line.

The brokerage business expects considerable progress in the near future, with a risk-reward ratio that is reasonably balanced.

Prabhudas Lilladher 

IndiGo, according to brokerage firm, is better positioned than its peers and is likely to emerge stronger after Covid due to 1) its superior balance sheet (Rs 63 billion in free cash) and the opportunity to further strengthen by Rs 30 billion via QIP. 2) A cost structure that is industry-leading, and 3) a competent management team.

The company is valued at 9x Sep23 adj. EV/EBITDAR, resulting in a target price of Rs 1,950. (earlier 1,850).

Motilal Oswal

Despite immediate obstacles, Indigo will emerge from the epidemic stronger than before, having implemented a number of preventative measures. A quick downturn in domestic passenger market demand, as well as the durability of yields at present levels, might be a risk to our call.

Due to the stock’s limited upside potential, we retain our neutral rating.

Moneycontrol.com is the source for this information.


21 September 2021

ICICI Direct recommends InterGlobe Aviation with a target price of Rs 2295.

InterGlobe Aviation gets a buy signal from ICICI Direct with a target price of Rs 2295. InterGlobe Aviation’s current market price is Rs 2158.

InterGlobe Aviation Ltd.’s price can reach a specific objective during the time period indicated by the analyst, which is Intra Day.
InterGlobe Aviation Ltd., founded in 2004, is a Large Cap business in the Airlines industry with a market capitalization of Rs 83506.22 crore.

For the year ending 31-Mar-2021, InterGlobe Aviation Ltd’s primary Products/Revenue Segments are Income (Airlines), Other Operating Revenue, and Traded Goods.

Financials

The firm reported a Consolidated Total Income of Rs 3170.25 Crore for the quarter ended June 30, 2021, down -50.17 percent from the previous quarter’s Total Income of Rs 6361.80 Crore but up 177.16 percent from the same quarter last year’s Total Income of Rs 1143.82 Crore. In the most recent quarter, the company generated a net profit after tax of Rs -3174.18 crore.

Reasons for Investing

MACD in purchase mode and a resounding breakthrough over numerous highs from the previous two years.

FII Holdings/Promoter

As of June 30, 2021, promoters owned 74.8 percent of the firm, while FIIs owned 19.5%, DIIs 3.6 percent, and public and others 2.1 percent.

economictimes.com is the source for this information.


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