Shares of InterGlobe Aviation Ltd (IndiGo) continued their upward momentum, gaining nearly 7% in the last five days, reaching ₹4,558.80 in early trade on February 24. The stock has now risen for the sixth consecutive session, driven by strong market sentiment and positive analyst commentary.
Citi Raises Target Price to ₹5,200
Citi analysts placed IndiGo on a 90-day positive catalyst watch, raising their target price to ₹5,200 from ₹5,100 while maintaining a “buy” rating. The firm cited rising air traffic demand and IndiGo’s dominant market share as key growth drivers. Additionally, a surge in passenger traffic to Uttar Pradesh airports due to the Maha Kumbh has contributed to increased demand.
Market Performance & Key Drivers
- Stock Price: ₹4,558.80 (+6.61% in 5 days)
- Market Cap: ₹1.76 trillion
- Day’s Range: ₹4,495.65 – ₹4,556.00
- Year Range: ₹3,020.00 – ₹5,035.00
Citi also expects an improvement in passenger load factors (PLFs) in Q4FY25, despite it being a seasonally weak quarter, which could boost revenue yields.
Financials & Challenges
In Q3 FY25, IndiGo reported:
- Net profit: ₹2,449 crore (-18% YoY)
- Revenue: ₹22,111 crore (+14% YoY)
- Available seat kilometers (ASK): +12% YoY
- Revenue passenger kilometers (RPK): +13.5% YoY
However, cost pressures impacted profitability, with cost per available seat kilometer (CASK) excluding fuel rising 23.1% YoY to ₹3.25 due to higher operational costs and inflationary pressures.
Jefferies Also Raises Target Price
Alongside Citi, Jefferies also revised its target price to ₹5,260 per share from ₹5,100, citing IndiGo’s:
- 60%+ domestic market share
- Capacity expansion amid rivals facing constraints
- Competitive cost advantage over peers
With analysts bullish on IndiGo’s future performance, investors are closely watching for further growth in air traffic demand and margin improvements in the coming quarters.
