Shares of InterGlobe Aviation Ltd (IndiGo) surged 3% after global brokerage Morgan Stanley raised its target price to ₹6,085, reaffirming its ‘Overweight’ rating. The firm anticipates a strong Q4 FY25 performance, supported by favorable industry trends and strategic growth drivers.
Morgan Stanley highlighted several tailwinds for IndiGo, including robust yields, tight industry capacity, and the ongoing recovery from aircraft groundings (AOG unwind). These factors are expected to significantly boost the airline’s performance in the upcoming quarter.
Additionally, the expansion of IndiGo’s business class offerings and a decline in fuel prices are likely to provide further support. The brokerage also emphasized the airline’s improving international operations, which are expected to drive medium-term growth and trigger a valuation re-rating.
Currently, IndiGo trades at FY26E and FY27E EV/EBITDA multiples of 10.4x and 8.3x respectively, compared to its pre-COVID median of 8.5x. The brokerage added that this indicates a potential upside as the airline capitalizes on India’s aviation upcycle.
IndiGo stock opened at ₹5,108.00, reaching a high of ₹5,161.05 and a low of ₹5,089.05 during the day. The stock is nearing its 52-week high of ₹5,190.35, showing strong momentum. Compared to its 52-week low of ₹3,441.05, IndiGo has seen significant growth.
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