Interglobe Aviation share price slipped 2 percent in early trade on January 29, a day after the company declared its December quarter result.
On January 28, the company reported a consolidated net loss of Rs 620 crore for the quarter ended December 31, 2020, against a profit of Rs 496 crore in the corresponding quarter a year ago.
The company's revenue for the quarter fell 50.6 percent YoY to Rs 4,910 crore against Rs 9,932 crore in Q3 FY20.
Consolidated EBITDA fell 49.8 percent YoY to Rs 842.2 crore in Q3 FY21 against Rs 1,676 crore in the same quarter last year. EBITDA margin came at 17.1 percent against 16.9 percent YoY. EBITDAR reduced 49.7 percent to Rs 987.1 crore against Rs 1,961 crore YoY.Also Read - IndiGo posts Q3 net loss of Rs 620 crore, revenue falls 50.6% YoY
We increase IndiGo’s FY22/FY23 earnings by 7.5%/ 7.1% and assign Accumulate rating given 1) sustained scale-up of operations 2) broad-based recovery in domestic demand aided by non-metro cities and 3) improving load factors on the back of rising consumer confidence
Despite the current state of uncertainty in the industry, IndiGo’s stock performance over the past one year is up 10%. We value the company at 16x (33% premium to global peers) FY23E EPS to arrive at a target price of Rs 1,525. There is no significant upside to CMP., hence, we maintain neutral rating.
At 09:26 hrs, Interglobe Aviation was quoting at Rs 1,578.10, down Rs 14.70, or 0.92 percent on the BSE.
The share touched its 52-week high Rs 1,786.95 and 52-week low Rs 765.05 on 08 December 2020 and 24 March 2020, respectively.Currently, it is trading 11.69 percent below its 52-week high and 106.27 percent above its 52-week low.