IndiGo Q1 Review — Muted Show; Forward-Looking Guidance Remains Intact, Says Motilal Oswal Maintaining 'Buy'
Interglobe Aviation is still a 'Buy' for Motilal Oswal though the earnings were below estimate.
(Photo source: Vijay Sartape /NDTV Profit)
IndiGo is shifting to finance leases to enhance asset control and enable end-of-term ownership, aligning with its maintenance, repair, and overhaul strategy. Its partnership with BIAL for a dedicated maintenance facility will improve aircraft availability and drive cost efficiency.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Despite geopolitical disruptions and operational headwinds in recent quarters, Ingerglobe Aviation Ltd. has demonstrated resilience through cost control, strong network execution, and steady passenger growth. Stabilizing fuel costs, the return of grounded aircraft to service, and improved demand are expected to drive performance in the coming quarters.
Backed by early double-digit capacity growth, stable yields, a rising international mix (currently ~30% of available seat kilometres), and improving operating leverage (from reduced damp leases and expanding wide-body routes), IndiGo is well-positioned to sustain healthy profitability.
We broadly retain our earnings estimates and expect its revenue/ Ebitda/adjusted profit after tax to clock a CAGR of 9%/13%/18% over FY25-27.
We value the stock at 11xFY27E Ebitdar to arrive at our target price of Rs 6,900. Reiterate Buy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
