Shares of Interglobe Aviation Ltd., the operator of IndiGo, fell nearly 4% on Tuesday after a large trade. At least 77.3 lakh shares, or 2% stake, changed hands at Rs 4,406.05 each.
The shares were sold for a total value of Rs 3,404.8 crore. The identities of the buyers and sellers were not immediately known.
Analysts recommend avoiding buying the stock at current price levels, adding that they might review this outlook if share price falls to Rs 4,000 apiece.
"It's an 'avoid' at current levels, we may review it again if reaches Rs 4,000, till then, wait and watch and be on the sidelines for Interglobe aviation," said Raghvendra Kedia, the founder of Prosperity Advisors.
The stock prices might be impacted by promoter dilution, ongoing wars and ramping competition via mergers and acquisitions, he said.
"We already have a 6% promoter dilution, there's a war in the background which can actually push crude prices and squeeze the margins for Interglobe aviation," Kedia said.
"On the competing side we have Vistara, Tata Airlines and Air India merging together, so their fire power as a head-on competitor might increase in terms of better slots," he said.
Shares of the company fell as much as 3.92% during the day before paring some losses to trade 3.61% lower at Rs 4,401.80 per share, compared to a 0.29% advance in the benchmark Nifty 50 at 10:44 a.m.
The stock has fallen 48.32% year-to-date and 67.39% in the last 12 months. Total traded volume so far today stood at 2.14 times its 30-day average. The relative strength index was at 57.62%.
Of the 21 analysts tracking the company, 15 maintain a 'buy' rating, four suggest a 'hold', and two recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 2.7%.
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