InterGlobe Aviation (IndiGo) has been a topic of interest among brokerages following its Q2 results, with analysts offering mixed views on the stock due to various operational challenges and market dynamics. Here’s what leading brokerages are saying:
- Kotak Institutional Equities: Recommends Buy with a target price of ₹5,200, indicating a potential upside from the current market price of ₹4,373.70. Kotak highlighted that the sharp miss in PBT was due to transient issues, such as aircraft groundings and unexpected fuel inflation. The brokerage remains optimistic due to healthy demand trends and maintains a double-digit full-year growth guidance. Kotak adjusted its FY27 estimates downward by 10% but continues to see long-term growth potential.
- Goldman Sachs (GS): Maintains a Buy rating but cut the target price to ₹4,800, suggesting an upside of around 9.7%. GS noted that while Q2 results missed expectations, the revenue beat was driven by yields that exceeded projections. GS also emphasized IndiGo’s expanding passenger fleet and management’s expectation of reducing grounded aircraft by FY26, which should help address current capacity constraints.
- Motilal Oswal (MOSL): Rates the stock as Neutral with a target price of ₹4,130, slightly below the current market price. MOSL attributed IndiGo’s Q2 net loss to seasonal factors and high fuel costs, while EBITDA came in line. The brokerage acknowledged the impact of over 60 grounded aircraft due to engine issues but noted that management expects this number to improve to mid-40s by FY26.
- Jefferies: Maintains Buy with a target price of ₹5,100. Jefferies highlighted the challenges of aircraft groundings, fuel inflation, and seasonal fluctuations. However, it is optimistic about mid-term improvements in yields and expects better visibility over the coming quarters as fleet utilization improves and market dynamics stabilize.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions
