The 13 reports from 4 analysts offering long term price targets for InterGlobe Aviation Ltd. have an average target of 855.33. The consensus estimate represents a downside of -15.49% from the last price of 1012.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-06-03||InterGlobe Aviation ..||HDFC Securities||1116.05||22.00||1116.05 (-9.31%)||Target met||Buy|
We are lowering our EBITDAR estimates by 75/43% for FY21/22E to factor in the changed demand environment. We roll forward our TP to Mar-22 and set a revised TP of Rs 1,110 (we continue to value the stock on 6x EV/EBITDAR). Key risks: Any resolution of promoter differences on the upside, an increase in oil prices on the downside. We downgrade IndiGo to ADD (from BUY earlier). The management is shifting focus from growth to conserving cash and is revising its full year capacity guidance to factor in the weaker demand environment. While we believe that IndiGo is better placed to withstand the downturn due to its dominant market share/scale, a healthier balance sheet (as compared to competition) and cost cutting initiatives (phasing out of older CEO planes), the overall demand outlook is challenging.
|2020-06-03||InterGlobe Aviation ..||Prabhudas Lilladhar||1189.95||995.00||1189.95 (-14.94%)||Target met||Accumulate|
IndiGo is focusing on 1) Reducing unit costs by cutting down all possible discretionary expenses 2) Efficient utilization of fleet 3) Right sizing capacity in line with demand and 4) explore new networks and revenue model. Through these initiatives, the management aims to generate additional liquidity to the tune of Rs30-40bn in the coming 9 months. With 123 less efficient A320ceos to be returned over the next 2 years and given the uncertain demand environment, we do not expect the rate of induction of fuelefficient A320neo family to match the exit of A320ceos. We expect FY21 capacity to decline by 46% YoY while FY22 capacity is likely to be 90% of...
|2020-05-22||InterGlobe Aviation ..||Prabhudas Lilladhar||953.90||1200.00||953.90 (6.11%)||Target met||Accumulate|
Introduction of price brands based on duration of flight After nearly 2 months of being grounded, Govt has finally announced resumption of domestic air travel from May 25, 2020, in a phased manner. Initially airlines shall operate at 1/3rd of the approved 2020 summer schedule and the number of flights will increase in a calibrated manner. However, in an unprecedented move, the Govt has introduced price bands on routes. With Q2 traditionally being the weakest of all quarters, price band is likely to further hamper airlines from achieving breakeven fares/load factors. With...
|2020-05-13||InterGlobe Aviation ..||Geojit BNP Paribas||984.00||0.00||984.00 (2.86%)||Sell|
|2020-01-28||InterGlobe Aviation ..||HDFC Securities||1453.75||1750.00||1453.75 (-30.38%)||72.90||Buy|
We re-iterate our Buy on Indigo as (1) The carrier will benefit from improving industry dynamics in the medium term. Air India has once again been put up for divestment by the GoI (2) Crude prices remain benign which will allow for better cost management. Efficiency gains from the Neo fleet will further benefit (3) Valuations at current levels (6.7/4.9x FY21/22E EV/EBITDAR) are undemanding. Any resolution of the ongoing dispute amongst the two promoters will lead to a re-rating of the stock. IndiGos 3QFY20 results were ahead of expectations - the demand environment improved in Nov-Dec, post a soft October, which led to the earnings beat. The revenues grew ~25% YoY due to an improvement in yields (+10 QoQ) and higher ancillary revenues (+29% YoY). We roll forward and set a Dec-21 TP of Rs 1,750 (@6x EV/EBITDAR). Maintain BUY.
|2020-01-14||InterGlobe Aviation ..||Motilal Oswal||1445.60||1549.00||1445.60 (-29.98%)||53.04||Neutral|
The DGCA had earlier made it clear to preferentially replace unmodified engine aircraft with the new deliveries INDIGO takes over the coming months rather than deploying on a new/fresh schedule. This will allow the company to make net additions in ASK growth and facilitate flying of new pilots, whose salaries were an overhang and not associated to ASKs. INDIGO is expecting a lag in deliveries of new aircraft owing to various issues faced by Airbus with the family cabin layout of A321neo and a delay in engine deliveries from engine manufacturers (PW and CFM International). We have built in ASK growth of 6%/12% (unchanged) for FY21/22 as INDIGO targets to replace most of the older aircraft by end-FY22 with new deliveries. We expect INDIGO to continue enjoying the streak of highest domestic market share (~48% for 8MFY20) with its ASK growth plan back on track and concerns about delivery delay from Airbus subsiding in CY20.
|2019-11-26||InterGlobe Aviation ..||Motilal Oswal||1427.20||1535.00||1427.20 (-29.08%)||Target met||Neutral|
26 November 2019 INDIGO has guided to bring down its high maintenance cost significantly from FY22 as deliveries for A321neos replace the older aircraft and the share of A321neos increases in the total fleet. However, the directive from the DGCA can delay this guidance due to replacement of older aircraft, which in turn might require extension of current leases and result in continued high maintenance cost. It may take 5-6 months to catch up the lagged supply, creating difficulties for replacement of engines according to the DGCAs directive. Considering the sizeable amount of modification (110 engines) and the supply lag from the aircraft manufacturer, the company may not be able to replace all of the required 110 engines in FY20, in our view. As a result, there is no change in our EPS estimate for FY20/21. Our estimates are highly sensitive to (a) ticket yield, (b) PLF and (c) crude price assumption.
|2019-11-05||InterGlobe Aviation ..||Geojit BNP Paribas||1462.45||1596.00||1462.45 (-30.79%)||57.68||Accumulate|
Geojit BNP Paribas
Going ahead, led by festive and improvement in slot allocation we expect aircraft utilization and profitability to improve. We remain constructive on long growth story given its market leadership position, aggressive capacity addition and strong balance sheet....
|2019-10-28||InterGlobe Aviation ..||HDFC Securities||1467.80||1610.00||1467.80 (-31.04%)||59.07||Buy|
While IndiGo's 2QFY20 results have disappointed, we believe that (1) The carrier will benefit from improving industry dynamics in the medium term as the airline enjoys a dominant market share of ~48% (2) Crude prices remain benign which will allow for better cost management (3) Further, valuations at current levels (6.6/4.8x FY21/22E EV/EBITDAR) are undemanding. The multiples are impacted due to the ongoing dispute amongst the two promoters. Any resolution of the above will lead to a re-rating of the stock. IndiGos 2QFY20 results were significantly below expectations (loss of Rs 10.6bn) due to increased operating expenses. We are reducing our EBITDAR estimates by ~20% over FY20-22 to factor in the above. Maintain BUY with a revised TP of Rs 1,610 (6x Sep-21 EV/EBITDAR). The sharp correction in the stock is pricing in the weak results.
|2019-10-25||InterGlobe Aviation ..||Motilal Oswal||1467.80||1542.00||1467.80 (-31.04%)||Target met||Neutral|
25 October 2019 INDIGO reported a yield of INR4.0 (in-line) for 2QFY20. However, RPK of 20.2b came in below our estimate of 21.4b, resulting in net sales of INR81.1b (+31% YoY) a miss of 8%. EBITDAR was down 13% YoY to INR0.97b, led by a forex loss of INR4.5b (relating to mark-to-market due to capitalization of operating lease liabilities) and accrual of additional rental cost of INR3.2b on account of reassessment of supplementary rentals. Forex loss was at INR4.5b (v/s a loss of INR3.4b in 2QFY19 and a gain of INR0.4b in 1QFY20). The company reported a net loss of INR10.
|2019-07-24||InterGlobe Aviation ..||HDFC Securities||1595.00||1785.00||1595.00 (-36.54%)||Target met||Buy|
We have increased our earnings estimates over FY20/21E by 11/3% to factor in the higher yield assumptions. We are lowering valuation multiples to factor in the recent differences between promoters. Retain BUY, but quick resolution will help further rerating, given favourable competitive dynamics. Helped by lower competition in 1QFY20, INDIGOs yields increased sharply (+13.7/10.8% YoY/QoQ), driving revenue growth of 45/20%. Our estimates rise to bake higher efficiencies, with market share now ~50%. However, friction between promoters will weigh on investor confidence. Valuation multiples will remain constrained, meanwhile. Our revised TP is Rs 1,785 (6x FY21E EV/EBITDAR vs 8x earlier).
|2019-07-20||InterGlobe Aviation ..||Motilal Oswal||1462.95||1410.00||1462.95 (-30.81%)||Target met||Neutral|
20 July 2019 INDIGO reported Ind-AS 116-based quarterly results. Yield for the quarter was in line with our estimate at INR4.55, leading to 45% YOY increase in net sales at to the transaction impact of Ind-AS 116 lease and supplementary expenses were replaced by depreciation (on ROU asset recognized) and finance charges (finance lease liability). Forex gain was at INR446m (v/s loss of INR2,461m in 1QFY19 and gain of INR105m in 4QFY19). PAT came in at INR12.0b (v/s our cost was higher by 70% YoY at INR11.1b owing to salary increments and new pilots hiring (currently under training). ASK increased 31% YoY to 23.3b. The company added ~18 new planes during the quarter and expects delivery of first leap of A320neo next year. RPK in 1QFY20 increased by 30% YoY at 20.7b, with RASK at INR4.04 the highest since 1QFY16. Also, cargo revenue increased significantly as INDIGO has increased the range of its cargo products.
|2019-07-11||InterGlobe Aviation ..||Geojit BNP Paribas||1354.50||1507.00||1354.50 (-25.28%)||Target met||Accumulate|
Geojit BNP Paribas
the last one year. Promoter Rakesh Gangwal RG' with 37% stake in Indigo has asked for SEBI's intervention. Point of contention by RG are corporate governance issue, related party transactions (RPT) between Indigo & IGE group (IGE is controlled by...
|2019-05-29||InterGlobe Aviation ..||Geojit BNP Paribas||1637.00||1925.00||1637.00 (-38.17%)||Buy|
|2019-05-28||InterGlobe Aviation ..||HDFC Securities||1652.60||1846.00||1652.60 (-38.75%)||Target met||Buy|
Seasonally strong 1QFY20, profitable expansion into international markets and strong focus on efficiency drive further upside. We have tightened our load factor and yield assumptions resulting in our EBITDAR for FY20/FY21E improving by 8.9/13.8% to Rs 105.1/144.2bn. In the medium term, we need to track impact of industry capacity addition on pricing and load factors. Oil remains a big variable. We continue to rate INDIGO a BUY post stronger than expected 4QFY19. Seasonally strong 1QFY20 at a time when industry capacity is low augurs well for the carrier. Profitable expansion into international markets and strong focus on efficiency drive further upside. Our TP is raised to Rs 1,846 (8x FY21E EV/EBITDAR).
|2019-01-24||InterGlobe Aviation ..||HDFC Securities||1183.65||1280.00||1183.65 (-14.49%)||Target met||Buy|
We maintain BUY with a TP of Rs 1,280 (+15.6%) based on 8.0x Dec 20E EV/EBITDAR. Driven by a 27.8% YoY increase in RPKMs and a 4.5% YoY increase in yields, INDIGO reported a 28.1% YoY increase in 3QFY19 revenue to Rs 79.2bn (+7.2% vs. expectations, driving the beat). Despite revenue growth INDIGOs adj. EBITDAR plummeted 17.6% YoY to Rs 16.0bn as unit fuel costs remained elevated at Rs 1.58 (+27.3%/1.4% YoY/QoQ), while unit non-fuel costs at Rs 2.14 increased 3.6%/-6.5% YoY/QoQ. RPAT at Rs 1.9bn came in much ahead of our estimate of a loss of Rs 2.5bn.
|2019-01-23||InterGlobe Aviation ..||Motilal Oswal||1111.00||1074.00||1111.00 (-8.90%)||Target met||Neutral|
23 January 2019 After a long time, pricing pressure in the 0-15 day ticketing window appears to have eased resulting in ticket yield rising 3.7% YoY to INR3.83. Fuel cost per ASK increased by 27% YoY. However, increase in yield resulted in EBITDAR margin rising from a six-year low of 1.8% in 2QFY19 to 20.2% in the quarter (31.3% in 3QFY18). Management has guided for ASK growth of 34% YoY in 4QFY19. Growth in domestic passengers has been lagging industry-wide capacity addition. This is expected to keep yields under pressure going forward. CASK increased 14% YoY to INR3.58, while CASK ex fuel increased 5% YoY to INR1.98. For 9MFY19, PAT stands at a loss of INR4.
|2018-10-30||InterGlobe Aviation ..||Geojit BNP Paribas||884.05||1018.00||884.05 (14.49%)||Target met||Accumulate|
Geojit BNP Paribas
InterGlobal Aviation Ltd (Indigo) is one of the most efficient low cost carriers (LCC) with a market share of 40% in Indian aviation sector. Despite robust passenger growth of 33% YoY in Q2FY19, the reported PAT loss was Rs652cr due to rise in fuel cost & forex loss. Engine issues have resolved and aircraft deliveries have picked-up with 20 aircraft deliveries this quarter. We expect earnings to pick-up in H2FY19 led by pass through of higher fuel cost and cost rationalisation....
|2018-10-25||InterGlobe Aviation ..||HDFC Securities||884.00||935.00||884.00 (14.50%)||Target met||Buy|
Upgrade to BUY with a TP of Rs 935 (+5.8%) based on 8.0x Sep 20E EV/EBITDAR. Our TP has high sensitivity to crude/USD-INR and yield assumptions. Despite a 16.9% YoY increase in 2QFY19 revenue to Rs 61.9bn, INDIGOs adj. EBITDAR slumped to Rs 1.1bn (-92.9% YoY). Despite the 29.4% growth in RPKMs, revenues were hit as yield (Rs 3.33) fell 6.6% YoY. EBITDAR was impacted by higher fuel costs (rose 42.7% YoY to Rs 1.56/ASKM) and other operating expenses Rs 2.29/ASKM (+13.5% YoY). Forex loss at Rs 3.4bn further hit RPAT (Rs -6.5bn) vs. Rs 5.5bn in 2QFY18.
|2018-10-24||InterGlobe Aviation ..||Motilal Oswal||811.00||785.00||811.00 (24.80%)||Neutral|
24 October 2018 INDIGOs ticket yield declined 10% YoY (-11% QoQ) to INR3.2, led by pricing pressure in the 15-day window (contributes ~40%) due to intense competition. increased sharply by 42% YoY in 2QFY19. Higher capacity addition in a seasonally weak quarter resulted in a poor yield. Adding to this, higher other expenses squeezed the EBITDAR margin to a six-year low of 1.8% in 2QFY19. We expect INDIGO to continue facing pricing pressure in the next few quarters to profitably deploy incremental capacity given intense competition due to industry wide capacity addition. Dismal operating performance and likely continuance of the same prompt us to cut our FY19 EPS estimate from INR35.3 to -INR22.9. We adjust our yield estimate for FY20 marginally. For 1HFY19, EPS stands at -INR16.2. For the full-year, we estimate EPS of -INR22.