Jefferies retains a Buy rating on InterGlobe Aviation (IndiGo) with an updated target price of ₹5,260, implying a 24% upside from the current market price of ₹4,255.75.
Key Insights:
- Dominant market share: IndiGo remains a leader with ~60%+ share in India’s domestic air travel market.
- Recent underperformance due to higher costs and a miss in Q2FY25 results is expected to normalize.
- Cost optimization efforts are expected to support earnings recovery.
- Capacity ramp-up story intact: IndiGo’s scale-up comes as most peers face capacity constraints, boosting yields.
- Peer airlines’ inferior cost structures provide IndiGo with a competitive advantage.
Jefferies remains positive about IndiGo’s growth trajectory, supported by its market leadership and operational resilience.
Disclaimer: This content is for informational purposes only. Please consult your financial advisor before making investment decisions.
