InterGlobe Aviation shares rally 3% after doubling Q4 profit. Brokerages increase target price up to Rs 5,192
Shares of InterGlobe Aviation, which operates IndiGo Airlines, rose nearly 3% in Friday's trade on BSE to its new 52-week high of Rs 4,520 after the company’s PAT more than doubled to Rs 1,895 crore in Q4.
Revenue from operations increased 26% year-on-year (YoY) to Rs 17,825 crore in the reporting quarter while the airline's passenger ticket revenues grew 25% YoY to Rs 15,601 crore.
Here’s what analysts from various global and domestic brokerages say:
Nuvama
Nuvama stated that IndiGo’s growth is attributable to strong capacity addition, low ATF cost, and a rise in yields. RPKM rose as the demand stayed strong while the international segment surged 49% YoY. Nuvama further believes cost realization to continue and yields to remain healthy as a duopolistic structure bodes well for the company.
Nuvama maintained a ‘buy’ view of the stock with a target price of Rs 5,192.
Bank of America
The global brokerage firm has lifted its estimates after Q4 beat. They expect a temporary margin squeeze in Q1FY25 but the earnings growth story is intact beyond the near term.
BofA has retained a ‘buy’ on IndiGo with a target price of Rs 4,900.
Emkay Global
“Indigo is unveiling a tailor-made business-class offering by Aug-24; internationalization remains a key strategy. We raise FY25/26E EPS by 2%/7% to build in lower fuel cost,” said Emkay Global.
The domestic brokerage firm has retained a ‘buy’ rating on IndiGo with a target price of Rs 5,000.
Kotak Institutional Equities
Indigo continued to benefit from constrained
