IndiGo (Interglobe Aviation Ltd) shares witnessed a 3% jump following a Buy rating upgrade by Motilal Oswal Financial Services (MOSL). The brokerage has set a target price of Rs 6,550. As of 10:22 AM, the shares were trading 2.79% higher at Rs 5,295.00.
MOSL’s positive outlook is driven by strong domestic demand trends and favorable Brent crude prices, despite global geopolitical tensions. The firm believes these factors create a favorable macro environment for the aviation sector, with IndiGo poised to capitalize on its market dominance and execution strengths.
The report also highlights that IndiGo is well-positioned to benefit from the ongoing growth in Indian aviation. MOSL expects the airline to achieve a Compound Annual Growth Rate (CAGR) of 28% in EBITDA and 38% in PAT over FY25–FY27. With the stock trading at 20x FY26 EPS and 9.7x FY26 EV/EBITDA, MOSL views these valuations as attractive given the company’s robust growth trajectory.
As per the report, IndiGo’s strategic initiatives, including expanding capacity, adding international routes, and enhancing operational efficiency, are expected to drive long-term profitability and reinforce its leadership in the sector.
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