IIFL Securities Stock Idea: Buy Interglobe Aviation with Target Rs 4550

On July 25, IIFL Securities issued a "buy" recommendation for Interglobe Aviation at its current market price of Rs 4456.35. The brokerage firm has set a target price of Rs 4550 for Interglobe Aviation, indicating a potential upside of over 2%. IIFL Securities' bullish outlook is based on the airline's strong market position, expanding fleet, and improving financials. The brokerage firm believes that Interglobe Aviation is well-positioned to capitalize on the recovery in domestic and international air travel demand.

About Interglobe Aviation:

Interglobe Aviation Limited is an Indian aviation company headquartered in Gurugram, Haryana. It operates India's largest domestic airline, IndiGo, and its international low-cost carrier subsidiary, Air India Express. Interglobe Aviation was founded in 1996 and began operations in 2006. It is the largest airline in India by market share, with over 50% of the domestic market. The company operates a fleet of over 290 aircraft, including Airbus A320s, A320neos, A321s, and ATR 72s. It has a network of over 90 destinations, including 74 domestic and 16 international. The company has a strong financial performance, with consistent profits and growth in revenue and market share.

52 Week Price Trend:

InterGlobe Aviation, the parent company of IndiGo, is trading at Rs 4456.35, a significant increase compared to its 52-week low of Rs 1810.45. The stock has climbed over 146% in the past year, driven by a surge in demand for air travel following the easing of COVID-19 restrictions. However, it is still below its 52-week high of Rs 3301.4 touched in October 2022, indicating potential for further upside.

Stratzy's MOST Analysis:

Stratzy's MOST framework evaluates INDIGO's fundamental risks as medium. The BBB rating indicates overall strengths in Management, Outlook, Safety, and Trend. The company exhibits sound management practices, a positive growth outlook, adequate financial stability, and a generally uptrending stock price. However, the rating also suggests that INDIGO may face some potential risks or challenges that investors should be aware of when making investment decisions.

Fundamental and Technical information provided in this blog were last updated on 25 Jul, 2024

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