Dipan Mehta sees buying opportunity in InterGlobe Aviation shares amid current headwinds

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At previous close, the Sensex was down -64.77 points (-0.08 percent) at 85,641.9, and the Nifty was down -27.20 points (-0.10 percent) at 26,175.75

Despite near-term operational headwinds causing disruptions for air travellers, market expert Dipan Mehta, Director at Elixir Equities, views the current situation as a buying opportunity for investors in InterGlobe Aviation (IndiGo). Speaking with CNBC TV18, Mehta suggested that any significant price correction in the airline's stock should be seen as a chance to accumulate shares in a market leader.

Mehta acknowledged the difficulties faced by passengers but described the challenges for the airline as a "temporary blip." He disclosed that both he and his clients are investors in the company. For those who do not currently hold the stock, he believes this is a favourable moment to consider an investment. "If investors do not have shares of Indigo, this is a good opportunity to get into the stock if there's a steeper correction," Mehta stated.

The stock is currently trading approximately 10% below its all-time high. Mehta pointed out that an additional 10% correction would offer an even better margin of safety for new investors. The airline has demonstrated strong performance, increasing its market share from 62% to 65% over the past year.

Underscoring his positive long-term outlook, Mehta described InterGlobe Aviation as a "nice steady, secular, fundamentally strong growing company." He also highlighted favourable industry dynamics and the company's structurally low-cost model as key strengths. He concluded that such periods of "temporary negative news flow are great opportunities to increase exposure" to the stock.