InterGlobe Aviation Ltd. share price target

InterGlobe Aviation’s (IndiGo) fleet management has been its absolute bedrock in building a successful cost-efficient airline operation. This has been further strengthened by IndiGo’s latest order of 500 Airbus A320 family aircraft placed in June’23.

We hosted the senior management of InterGlobe Aviation (IndiGo) at our Singapore conference. Company was represented by Gaurav Negi (CFO), Kailash Rana (Head, Investor relations) and Richa Chhabra (Associate Director – investor relations).

We maintain our positive stance on InterGlobe Aviation (IndiGo) on the basis of a conducive supply-demand balance in India’s domestic aviation. The strategy to increase the international mix is gaining traction, which should further aid profitability.

We expect IndiGo to register Rs3bn/Rs23bn PBT (ex-forex impact) in Q4FY23/FY23. Profits are highly sensitive to yields which is the key upside/downside risk to our estimates. However, IndiGo remains well placed to benefit from strong systemic demand and its leading competitive positioning.

We attended InterGlobe Aviation’s (IndiGo) analyst meet held at its iFly Training Centre (Gurugram) on 23rd Mar’23. The airline remains focused on growth (>15% ASK growth in FY24, doubling the fleet by 2030) and internationalisation (increase ASK mix to 30% over next two years from 23% in 9MFY23).