Interglobe Aviation Gets 'Buy' Upgrade From Motilal Oswal, Sees 27% Upside — Here's Why

IndiGo has been on an upward trajectory after Covid – gaining market share in the domestic market (aided by the insolvency of GoFirst in May’23), expanding its international and cargo business, adding new destinations/routes, signing codeshare agreements, and procuring delivery of aircraft from OEMs..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.We upgrade Interglobe Aviation Ltd. to Buy as we believe that benign Brent crude prices amid the ongoing geopolitical turmoil and favorable domestic demand bode well for the company. We assign a target price of Rs 6,550 premised on 10 times FY27E EV/Ebitdar. The stock currently trades at a P/E of 20x FY26 EPS and 9.7x FY26E EV/Ebitda. We estimate a CAGR of 28%/38% in Ebitda/PAT during FY25-27E.We lowered our Brent assumption for FY26-27E to $65/bbl (from $70/bbl), based on the following factors:there is going to be a gradual unwinding of OPEC+ voluntary cuts from Apr’25 andIEA projects that global supply is likely to exceed demand and the demand-supply gap is set to widen as voluntary cuts unwind from Apr’25. For IndiGo, aircraft fuel accounts for ~40% of total expenses; therefore, softer crude prices bode well for the company. IndiGo has been on an upward trajectory after Covid – gaining market share in the domestic market (aided by the insolvency of GoFirst in May’23), expanding its international and cargo business, adding new destinations/routes, signing codeshare agreements, and procuring delivery of aircraft from OEMs. These factors have helped the company maintain profitability for the past two years and will continue to drive its performance in the coming years..Click on the attachment to read the full report:.IndiGo Gets Its Most Bullish Target Price As Yet By Motilal Oswal — Here's Why.DISCLAIMERThis 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.

Interglobe Aviation Gets 'Buy' Upgrade From Motilal Oswal, Sees 27% Upside — Here's Why

IndiGo has undertaken an ambitious fleet expansion by placing orders for 925 aircraft set to be delivered by CY35—one of the largest in global aviation history, adds Motilal Oswal.

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