The IIFL Securities Report: Buy Interglobe Aviation - December 24

IIFL Securities has issued a buy call on Interglobe Aviation, the parent company of IndiGo airlines. The brokerage firm has set a target price of Rs 4640 for the stock, implying an upside potential of over 3% from its current market price of Rs 4520.5. The brokerage firm is optimistic about the company's prospects due to the easing of travel restrictions and the expected recovery in air travel demand.

About Interglobe Aviation:

InterGlobe Aviation Limited (IndiGo) is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the largest airline in India by passengers carried and fleet size, with a market share of over 47%. IndiGo operates a fleet of over 270 aircraft, including Airbus A320, A320neo, A321, and A321neo. The airline offers flights to over 75 destinations in India and abroad, including international destinations in Southeast Asia, the Middle East, and Europe. IndiGo is known for its low fares, on-time performance, and customer-centric approach.

52 Week Price Trend:

Interglobe Aviation, the parent company of IndiGo, has been facing headwinds in recent times due to rising fuel prices and intense competition in the domestic aviation industry. Despite posting a strong financial performance in the last quarter, the company's stock price has been under pressure, falling from a 52-week high of Rs 5035 to its current level of Rs 4520.5. This represents a significant correction of over 10%. Investors are closely monitoring the situation and evaluating the company's ability to navigate these challenges and maintain its profitability going forward.

Stratzy's MOST Analysis:

Stratzy's MOST framework has assigned a BB rating to INDIGO, indicating medium fundamental risks. This assessment considers the company's management, outlook, safety, and trend. The rating suggests that while INDIGO may face some challenges in these areas, the overall risk profile is manageable. The company's management team, outlook for future growth, safety measures, and market trend analysis all contribute to this rating.

Fundamental and Technical information provided in this blog were last updated on 24 Dec, 2024

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