Interglobe Aviation - All Set To Expand International Operations: Motilal Oswal

Motilal Oswal Report

Interglobe Aviation Ltd. is working to increase its international presence through strategic partnerships and loyalty programs. The company added seven new destinations and 19 routes in FY24. It has eight strategic partners with 27% international share in terms of ASKs in FY24.

IndiGo management has also been taking several pre-emptive measures to increase its global brand awareness, as it expects to capture a bigger share of growth from its international market in the coming years.

However, competition in the sector is expected to intensify with the resurgence of Air India and the entry of a new player. The stock is trading at ~21 times FY26E earnings per share of Rs 188 and 8.3 times FY26E enterprise value/ Ebitdar.

We reiterate our Neutral rating on the stock with a target price of Rs 4,065, valuing it at 8.5 times FY26E EV/Ebitdar.

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