1642.30 -35.25 (-2.10%)
NSEJan 22, 2021 03:31 PM
The 12 reports from 5 analysts offering long term price targets for InterGlobe Aviation Ltd. have an average target of 1376.00. The consensus estimate represents a downside of -16.22% from the last price of 1642.30.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-10-31||InterGlobe Aviation .. +||HDFC Securities||1309.50||1350.00||1309.50 (25.41%)||Target met||Buy|
HSIE Results Daily: Bharat Petroleum Corporation, InterGlobe Aviation, Indusind Bank, Cholamandalam Investment & Finance, Shriram Transport ...
Shriram Transport Finance: SHTF's 2Q earnings were ahead of estimates on account of lower-than-expected provisions. The company witnessed a significant and sustained improvement in monthly collection efficiency (reaching ~95% in September). Despite this, we remain cautious on SHTF's asset quality and continue to build in a significant rise in GNPAs in FY21E. We have revised our earnings estimates slightly upwards as we now build in lower (vs. earlier) yet elevated provisions. We maintain ADD with a revised target price of Rs 880 Max Financial: Despite a difficult environment, MAXL delivered an APE growth of 10.4% YoY. A significant share of NPAR savings in the mix drove margin higher by 320/710bps YoY/QoQ to 24.2% in 1HFY21. We expect the margins to moderate in 2H. We expect an FY21-23E APE/VNB CAGR of 12.6/15.4% and have adjusted our estimates to build in higher margins. We retain our ADD rating with a higher target price of Rs 690 (Sep-21E EV + 19.3x Sep-22E VNB less group level expenses and hold-co discount). Orient Cement: Orient Cement (ORCMNT) reported a solid 2QFY21 as it reported strong profitability, sharp working capital and debt reduction. While net sales fell 7% YoY to Rs 4.78bn on weak volumes, EBITDA soared 111% YoY to Rs 1.13bn on solid pricing and continued cost reduction. Thus, ORCMNT's APAT swelled to Rs 348mn vs net loss of Rs 77mn YoY. The company also reduced its working capital requirement, thus bolstering free cash on its books, which it used to reduce its debt by 20% from the Mar-20 level. We...
|2020-10-30||InterGlobe Aviation .. +||Motilal Oswal||1309.50||1350.00||1309.50 (25.41%)||Target met||Neutral|
INDIGO reported better-than-estimated ASK/RPK growth in 2QFY21, while yield was lower than estimates. This resulted in-line revenue for 2QFY21. INDIGO's cash burn reduced to INR250m in 2QFY21 (from ~INR300m as of 30th Jun'20) as the company undertook cost reduction initiatives for leasing, payroll and other costs (like non-aircraft rentals, IT costs, etc.). Relatively smaller increase in supplementary rentals to capacity with further reduction in employee cost and huge forex gain led to beat on our EBITDA est. at INR2.1b. Going forward, employee expenses are likely to increase (it stood at INR6.9b in...
|2020-10-29||InterGlobe Aviation .. +||BOB Capital Markets Ltd.||1309.50||1750.00||1309.50 (25.41%)||Target met||Buy|
|2020-09-15||InterGlobe Aviation .. +||Geojit BNP Paribas||1315.20||1465.00||1315.20 (24.87%)||Target met||Accumulate|
Geojit BNP Paribas
sumption of aircraft operations and likely market share gains. Cost rationalization and healthy cash positions will help to tide over the crisis situation. Replacement of old aircraft with 15% more fuel efficient fleet to benefit in medium term. Management focus expansion of international footprints and deeper penetration into Tier 2-3 cities, to drive growth. Though aircraft operations have re-started, FY21 is expected be a tough...
|2020-08-18||InterGlobe Aviation .. +||Motilal Oswal||1215.25||1095.00||1215.25 (35.14%)||-33.33||Neutral|
18 August 2020 According to the recent IMF estimates (Jun20), Indias GDP growth for 2021 is estimated at ~6.0%, higher than the global economic growth of ~5.4% for 2021. INDIGO has highlighted that medium-to long-term growth prospects for the Indian economy remain robust, and the return of normalcy in airline travel Under-penetration of airline travel in India currently Rise in the working-class population Expansion in the middle-income demographic group in the country In FY20, for INDIGO, ASK growth stood at +19% YoY and RPK growth at +18% YoY. initiatives, liquidity enhancement and improvement in the fleet mix. Most of the new aircraft would be financed through an operating lessor model, generating significant liquidity in FY21-FY22. Employee cost was up 47% YoY to INR47b in FY20. The company expects employee cost to be 30% lower v/s pre-COVID-19 levels by the end of FY21 with the undertaken payroll control initiatives.
|2020-07-29||InterGlobe Aviation .. +||Motilal Oswal||938.50||1030.00||938.50 (74.99%)||Target met||Neutral|
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.
|2020-07-29||InterGlobe Aviation .. +||Prabhudas Lilladhar||984.00||965.00||984.00 (66.90%)||Target met||Accumulate|
medium term, IndiGo is focused on optimizing costs and enhance liquidity by 1) Exploring new networks and revenue model (Charter, Cargo etc) 2) Reducing unit costs by cutting down all possible discretionary expenses 3) efficient utilization of fleet 4) 30% reduction in employee bill through mix of salary cuts, leave without pay and layoffs and 5) Monetizing owned aircrafts through SLB. Through these initiatives, the management aims to generate liquidity to the tune of Rs50-60bn over the year. IndiGo's plan of returning 123 less efficient A320ceos over the next 2 years while continuing to induct fuelefficient A320neo family will further help reduce unit costs. We expect FY21...
|2020-06-03||InterGlobe Aviation .. +||HDFC Securities||1116.05||22.00||1116.05 (47.15%)||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 (38.01%)||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 (72.17%)||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 (66.90%)||Sell|
|2020-01-28||InterGlobe Aviation .. +||HDFC Securities||1453.75||1750.00||1453.75 (12.97%)||Target met||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 (13.61%)||Target met||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 (15.07%)||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 (12.30%)||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 (11.89%)||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 (11.89%)||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 (2.97%)||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 (12.26%)||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 (21.25%)||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...