Neutral InterGlobe Aviation; target of Rs 4660: Motilal Oswal

Motilal Oswal recommended Neutral rating on InterGlobe Aviation with a target price of Rs 4660 in its research report dated March 20, 2025.

Broker Research

March 21, 2025 / 10:52 IST

Neutral

Motilal Oswal's research report on InterGlobe Aviation

India’s aviation boom: The Indian aviation industry is witnessing a rapid expansion, with domestic air travel set to double by CY30. This growth will be driven by a rising middle class, increasing disposable incomes, and government-led infrastructure projects. IndiGo, as the market leader, is wellpositioned to capitalize on this trend by expanding its fleet and network. Global expansion: India is emerging as a key player in international travel, projected to be the 5th largest international outbound tourism market by CY27. With over 50 countries offering visa-free or visa-on-arrival access for Indian travelers, outbound tourism is increasing. IndiGo is strategically growing its international presence through new routes and partnerships with global airlines via codeshare agreements. Infrastructure and policy support: The Indian government is investing USD25b to expand and modernize airport infrastructure by CY27. With the number of airports doubling in the last decade, increased capacity will support IndiGo’s expansion plans. Additionally, favorable policies, such as incentives for domestic aircraft manufacturing and MRO (maintenance, repair, and overhaul) services, provide a strong foundation for future growth.

Outlook

The stock is trading at ~20x FY26E EPS of INR248.9 and ~10x FY26E EV/EBITDAR. We reiterate our Neutral rating on the stock with a TP of INR4,660, based on 8x FY27E EV/EBITDAR.

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