IndiGo Share Price Hits Record High After Getting Its Most Bullish Target Price As Yet
The shares of IndiGo rose as much as 3.80% to Rs 5,347 apiece. It pared gains to trade 2.64% higher at Rs 5,287 apiece, as of 12:40 p.m.
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The shares of InterGlobe Aviation Ltd. rose nearly 4% and hit a fresh lifetime high after Motilal Oswal Financial Services upgraded the parent of India's largest airline operator IndiGo to a 'buy' rating. The brokerage has set a target price of Rs 6,550, implying a 27% upside from the current market price of Rs 5,151. That's the highest price target among the brokerages tracked by Bloomberg.
A key factor behind the upgrade is the revised Brent crude assumption of $65 per barrel for fiscal 2027, down from the earlier $70. Aircraft fuel comprises nearly 40% of IndiGo's expenses, and the easing of oil prices amid the unwinding of OPEC+ cuts is seen as a major tailwind.
Motilal expects IndiGo's operating income and profit after tax to grow at a CAGR of 28% and 38%, respectively, over the next two fiscals.
The airline is also betting on codeshare deals and tech innovations like AI-powered tools to streamline operations and boost customer experience, they added.
The note also highlighted Chief Executive Officer Pieter Elbers' influence since taking charge in 2022. Elbers is steering IndiGo towards global relevance while maintaining its low-cost DNA, believes the analyst. However, they noted that Elbers' role also represents a potential "key man risk."
IndiGo Share Price Rises
The scrip rose as much as 3.80% to Rs 5,347 apiece. It pared gains to trade 2.64% higher at Rs 5,287 apiece, as of 12:40 p.m. This compares to a 2.25% advance in the NSE Nifty 50 Index.
It has risen 46.80% in the last 12 months and 15.84% year-to-date. Total traded volume so far in the day stood at 1.04 times its 30-day average. The relative strength index was at 53.45.
Out of 23 analysts tracking the company, 19 maintain a 'buy' rating, two recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.5%.
