Shares of IndiGo's parent Interglobe Aviation rose 4% on Tuesday, June 9 after brokerages remained bullish on the aviation stock following investor day. IndiGo share price advanced 4.42% to Rs 4,539 apiece. The scrip was trading 3.9% higher by 2:50 pm, while the benchmark Nifty 50 index was 0.52% up.
According to a recent note by Emkay, Indigo has reiterated India's aviation growth story, driven by the economy, demography, and under-penetration, with double jump in the number of passengers expected by FY35 from 246 million in FY26. The brokerage has maintained buy rating on the stock at a target price of Rs 5,200, marking a 19.2% upside.
Emkay highlighted IndiGo management's aggressive targets for FY30, which includes 300 billion capacity, more than 550 aircraft fleet, 200 million passengers and 3,000 daily flights.
The outlook for FY27, however remains volatile and the management has guided for a broad single digit growth in Available Seat Kilometer YoY amid capacity rationalizatisation. Meanwhile, pricing would drive earnings growth, as witnessed in other consumption industries. Additionally, normalisation of the Middle East sector is essential for driving the international segment, and status of the conflict is a primary near-term determinant.
The airline also remains optimistic about the launch of XLR, and upgradation of certain features making long-haul flights more attractive. The government's fuel pricing support is a positive, but more reforms are required for the industry to sustain during adverse cycles.
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