HSBC has reiterated its buy rating on InterGlobe Aviation, the parent of IndiGo, with a target price of ₹6,920 per share, citing long-term benefits from its investments in maintenance, repair and overhaul (MRO) facilities as well as fleet expansion. The stock is currently trading at ₹5,740.50.
The brokerage noted that the company’s ongoing fleet induction and MRO efficiencies are expected to deliver cost savings of ₹0.30–0.40 per available seat kilometre (ASK). These measures, HSBC said, will support sustainable margin improvements over the medium to long term.
It added that IndiGo remains cash flow positive, and the benefits from its strategic investments are not yet fully reflected in the stock price. With demand for air travel in India continuing to rise and IndiGo maintaining its leadership position in the domestic market, HSBC expects upside potential as operational efficiencies translate into stronger financial performance.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerage and do not represent investment advice.
