InterGlobe Aviation Ltd.

NSE: INDIGO | BSE: 539448 | ISIN: INE646L01027 | Industry: Airlines
| Turnaround Potential
5917.5000 77.50 (1.33%)
NSE Jul 11, 2025 15:31 PM
Volume: 1.3M
 

5917.50
1.33%
Motilal Oswal
Despite higher cash burn of ~INR300m per day, the company was successful in its initiatives to create additional liquidity and thus realized ~35% of its earlier target of INR3040b, leading to free cash reduction of ~INR14b (v/s reported loss of INR28.4b). INDIGO plans to replace CEO aircrafts gradually, as earlier scheduled, by the end of Dec22; hence we build ASK of 85.8b for FY22 (-11% to FY20 For FY22E, we assume sentiment would improve from 3QFY22, resulting in the normalization of PLF at ~75% (although, expected PLF remains low at 75% for the full-year FY22 v/s average PLF of ~86% over FY1620). To note, the fare bands were recently further extended till the end of Nov20, and the permanent enforcement of fare bands could be a huge dampener on the Aviation industry as a whole, weakening sentiment for the regulated We have built-in a crude price forecast of USD40/bbl / USD50/bbl for INDIGOs fuel cost constitutes ~35% of the total cost (in FY20), and according to our EPS sensitivity, aircraft fuel savings of even 10% would translate into an EPS change of ~14% for INDIGO in FY22.
InterGlobe Aviation .. has an average target of 5744.00 from 8 brokers.
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