InterGlobe Aviation share price targets: Analysts have set targets for the IndiGo stock in the region of Rs 3,500 - 4,300, indicating a possible upside of 7% - 31% from the current level.
Price of IndiGo shares: UBS reported that it has increased its target price for the company from Rs 3,900 to Rs 4,000. Its expectations are flat to higher because of greater ASK growth and yields, even after accounting for increased petroleum prices and pilot wages.
A few brokerages that attended the March 22 Gurgaon analyst meeting of InterGlobe Aviation Ltd. (IndiGo) reported that the airline is still optimistic about the long-term prospects of the domestic air travel market and anticipates growth of 15 percent compound annual growth rate for FY24–30E. The airline operator and domestic regulators maintain a strong focus on international expansion, with the belief that India has the potential to become a major global center for international travel, similar to the Middle East. Analysts have set objectives for the company between Rs 3,500 and Rs 4,300, indicating a possible gain of 7.31% to 31% from the current position of IndiGo stock.
IndiGo revealed an improved pricing outlook for the March quarter, with YoY growth instead of the previous flat guidance. According to Kotak Institutional Equities, the company's low double-digit ASK growth estimate for the FY2025 full year is encouraging, indicating that the 14% YoY higher H1 summer schedule will likewise be sustained in H2, when the base hardens (Go Air absent).
According to UBS, it has increased its target price for the stock from Rs 3,900 to Rs 4,000 since it still believes IndiGo is worth 11 times FY26E EV/EBITDA. Its expectations are flat to higher because of greater ASK growth and yields, even after accounting for increased petroleum prices and pilot wages. According to UBS, there are still upside risks to its short-term yield predictions as well as medium-term capacity demand growth and profitability projections.
The cost impact of the newly proposed pilot fatigue criteria would be passed on to customers, and the company is currently in communication with regulators. We continue to hold a constructive view of Indigo in light of the airline's robust growth potential in India, share gains in foreign travel, its effective cost structure, and its exceptional operational performance. UBS stated, "We retain Buy with a revised price objective of Rs 4,000 (formerly Rs 3,900).
According to Kotak Institutional Equities, the analyst meeting highlighted IndiGo's belief that it is large enough to determine its own growth trajectory free from externalities. It stated that going forward, the emphasis will be on increasing connectivity to account for a higher percentage of foreign travel as well as investments in systems and operations.
"Given IndiGo's planning and the strength of the underlying demand, the near-term picture is encouraging for both ASK growth and price. BUY at the updated fair value of Rs. 4,300 as opposed to Rs. 4,200.
Three key components of InterGlobe Aviation's growth plan were highlighted: low cancellation rates, reasonable pricing, and punctual service. It also aims to invest in talent and improve the consumer experience. INDIGO wants to grow its global network by a large margin.
"The management has also been working to raise awareness of its brand throughout the world. The stock is currently selling at 7 times FY26E EV/EBITDAR and 14 times FY26E EPS of Rs 238. Since we think IndiGo would face a number of difficulties in the near to medium term, we continue to retain our Neutral rating on the company with a target price of Rs 3,510, according to Motilal Oswal.
