The share price of InterGlobe Aviation Ltd. (IndiGo) fell after Citi trimmed its target price to Rs 5,100 from Rs 5,700, citing persistent operational headwinds. Citi has maintained its 'buy' rating on the stock while slashing the target.
The brokerage pointed to pressures arising from crude, crack spreads, and currency movements. According to Citi, IndiGo's international traffic has been impacted by an adverse geopolitical landscape, weighing on near‑term profitability. The brokerage believes this could impact IndiGo's international operations as it estimates almost half of IndiGo's international traffic is contributed by the Middle East.
The note highlights that a depreciating rupee against the dollar inflates nearly 70% of IndiGo's operational costs, intensifying financial strain on margins.
Despite these challenges, the brokerage reiterated that a 10% increase in ATF prices can be offset through a 4–5% fare hike, offering some relief to cost pressures. While IndiGo continues to demonstrate resilience in domestic market share, Citi has adjusted its assumptions to reflect elevated fuel costs and currency-driven expenses.
IndiGo Share Price Today
IndiGo Share Price Today
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Shares of IndiGo fell as much as 2.98% with the stock trading at Rs 4,228.50 intraday as the markets opened on Thursday. This compares to a 1.18% decline in the NSE Nifty 50 Index.
Out of 27 analysts tracking the company, 22 maintain a 'buy' rating while three maintain a "hold" and two maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 5,654.23 implies an upside of 30%.
IndiGo In News
IndiGo CEO Pieter Elbers abruptly resigned on Tuesday, three months after the country's largest airline faced massive operational disruptions. The airline's Managing Director Rahul Bhatia told the staff that he would be managing the airline's affairs with a deep sense of responsibility. With more than 400 planes, IndiGo operates over 2,200 flights daily. The airline had a domestic market share of 63.6% in January.
ALSO READ: Should You Buy IndiGo After CEO Peter Elbers' Exit? Here's What Brokerages Are Saying
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