Shares of InterGlobe Aviation gained 4.6 percent intraday on November 5 after the aviation major said it would make a strategic business announcement with Qatar Airways later in the week.
The stock rallied more than 50 percent in the last one year. It was quoting at Rs 1,494.70, up Rs 58.65, or 4.08 percent on the BSE at 1209 hours IST.
India's largest airline IndiGo and Qatar Airways will make a strategic business announcement on November 7, the two companies said in a statement on Tuesday.
Qatar has in the past shown interest in investing in IndiGo but the Indian budget carrier has resisted.
“We are very interested in IndiGo ... We are talking to IndiGo of doing codeshare, joint flights but not yet an equity stake in the airline,” Qatar Airways CEO Akbar Al Baker told Reuters in an interview in August.
IndiGo is planning an aggressive push to more international destinations and the airline’s CEO Ronojoy Dutta and Qatar Airways CEO Akbar Al Baker will “talk about the vision and future for both the airlines”, they said in the statement.
Brokerage house Geojit remains constructive on IndiGo, given its strong balance sheet position and currently, it is leveraging this favourable position by aggressive capacity expansion for gaining market share.
It believes that near term headwinds have been already factored in the stock prices. "We value Indigo at P/E of 22x on FY21E, and maintain to accumulate with a target price of Rs 1,596, implying 11 percent potential upside from current levels," it said.
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