Shares of InterGlobe Aviation Ltd, which operates budget carrier IndiGo, fell on Tuesday after brokerages projected weak earnings for the September quarter.
On the NSE, IndiGo declined 1.5 percent to Rs 5,641.5 per share on the NSE following muted growth expectations from analysts.
Brokerage firm Investec maintained its sell rating on the stock with a target price of Rs 4,050 per share. The brokerage said the airline is set for another weak quarter and expects a pre-tax loss of about Rs 1,000 crore in Q2.
"Slower capacity growth will keep profitability under pressure. Modest yield gains and lower fuel costs should provide partial relief. With index inclusion behind, we expect the stock to realign with earnings fundamentals," Investec noted in its report.
Meanwhile, brokerage Citi said it expects moderation in IndiGo’s July–September performance, primarily due to lower supply rather than weak demand, NDTV Profit reported in a post on X. The brokerage retained its ‘buy’ call on the stock with a target price of Rs 7,100, indicating a potential upside of nearly 25 per cent from the previous close.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
