Emkay Global Financial's research report on InterGlobe Aviation
The stock, despite its recent strong runup, still has legs, given that competitors Air India/Akasa’s order books have higher exposure to Boeing (737 Max, facing safety issues) which implies risk to their near-term capacity adds. Indigo, backed by a steady stream of Airbus deliveries, can gain mkt share & improve yields. New airports in Noida (NCR) / Navi Mumbai should boost passenger traffic in 1-2 years. Though fuel prices are contained, a spike would hit rivals more than Indigo, diminishing competition for it. Mgmt announced an order of 30 A350 wide-body airplanes, stepping up its international plans. We bump up FY25E/26E EPS by ~20% on higher yields, and value Indigo at 20x Mar-26E EPS vs DCF-based ~17.5x Dec-25E EPS earlier.
Outlook
We reiterate our positive stance on Indigo, hoisting up our TP by ~34% to Rs 4,700 and rating to BUY from Add.
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