IndiGo shares gain following bullish outlook by Kotak Institutional Equities

Kotak Institutional Equities sees upside potential of 36% in IndiGo shares

Shares of IndiGo parent InterGlobe Aviation were up more than a percent on August 29 after a bullish commentary from Kotak Institutional Equities. The brokerage firm has a ‘buy’ rating on shares of the airline with a target price of Rs 3,400, reflecting an upside potential of 35.5 percent over the next year.

At 10:05 am, shares of the company were up 1.2 percent on the BSE at Rs 2,508.15.

“IndiGo has made meaningful market share gains in international and is strategically well-placed to make incremental gains,” the domestic brokerage firm said.

According to the brokerage firm, the move towards international operations will narrow down the significant competition for IndiGo to airlines capable of expanding their international presence.

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In the first quarter of FY24, data reveals a significant shift in market share favoring domestic airlines for international travel involving India, by around 900 basis points. Almost all major international airlines have experienced a decrease in market share, except for Singapore Airlines.

Among domestic carriers, InterGlobe Aviation has gained the most, securing a market share of over 17 percent after a substantial addition of 760 basis points.

Vistara has also gained ground with an increase of 310 basis points, reaching a similar market share. However, Go First and SpiceJet have observed a decline in their market share during this period.