Shares of InterGlobe Aviation, the parent company of IndiGo, soared 4% after Citi reaffirmed its ‘Buy’ rating, setting a price target of ₹5,200. As of 9:37 AM, the shares were trading 4.04% higher at Rs 5,182.00.
The brokerage firm remains optimistic about IndiGo’s strong market positioning and the robust demand for air travel in India, driven by a growing middle class and rising disposable income.
As the country’s largest airline, IndiGo is well-positioned to capitalize on the structural growth in both domestic and international air travel. The company’s aggressive expansion strategy, backed by its massive fleet and order book, strengthens its long-term prospects. Citi also emphasized IndiGo’s cost optimization efforts, particularly its initiatives to bring more maintenance and engineering activities in-house. This move is expected to enhance operational efficiency and reduce costs, giving the airline a stronger competitive edge.
Despite challenges such as fuel price volatility, IndiGo’s focus on operational efficiencies and its dominant market share make it a compelling investment. Analysts anticipate continued earnings growth in the coming years as the airline benefits from increasing passenger traffic and strategic fleet expansion.
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