IndiGo shares: InterGlobe Aviation stock flying 5% high, among top Nifty 50 gainers | Buy? Target price, upside
InterGlobe Aviation shares, the parent company of aviation giant IndiGo, rallied as much as 5% in Wednesday's trading session amid a strong bull run in the Indian stock market. The aviation stock was the top gainer on Nifty 50 on November 11.
IndiGo share price opened at ₹5,520 apiece on NSE today, as compared to the previous close of ₹5,430 on Monday and touched an intraday high of ₹5,692.30 on Wednesday.
The stock rally also came in amid falling crude oil prices on hopes for a de-escalation in the Iran war and concerns about ongoing attacks on shipping in the Strait of Hormuz.
Meanwhile, Indian equity benchmarks, the Sensex and Nifty, opened Wednesday's session on a strong note, supported by foreign fund inflows, better-than-expected September-quarter earnings and a continued decline in crude oil prices. The 30-share BSE Sensex surged 1,097.33 points to 82,186.92 in early trade, while the NSE Nifty 50 advanced 274.30 points to 25,317.55.
IndiGo reported a reduction in its consolidated net loss to ₹1,879.1 crore in the September quarter of FY27, compared with a loss of ₹2,582.1 crore in the corresponding quarter last year.
The airline's profitability remained under pressure due to elevated aviation fuel costs and rupee depreciation. However, CEO Willie Walsh said the company has multiple levers at its disposal to manage the rising operating expenses.
The country's largest airline said it would continue prioritising short-haul routes and follow a cautious capacity expansion strategy amid ongoing challenges in the aviation sector.
According to its regulatory filing, InterGlobe Aviation's total income rose to ₹24,311.9 crore in Q2 FY27 from ₹19,599.5 crore in the year-ago period. However, total expenses also increased significantly to ₹26,188.4 crore during the quarter. Aviation turbine fuel (ATF) expenses jumped 67.2% year-on-year to ₹9,966.8 crore, reflecting the impact of higher fuel prices on the airline's profitability.
Brokerage firm Motilal Oswal has maintained its ‘buy’ rating on the IndiGo stock with a target price of ₹6,000, seeing an upside potential up to 28%.
“Factoring in the ongoing West Asia crisis, which is keeping crude prices and jet fuel crack spreads elevated and limiting the scope for fuel-cost relief in 2HFY27, we cut our FY27/FY28 EBITDAR estimate by 6% each. We value the stock at 10x FY28E EBITDAR to arrive at our TP of INR6,000. Reiterate BUY,” the firm said.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said IndiGo shares are seeing fresh buying interest after crude oil prices corrected sharply overnight. He highlighted that falling crude prices are favourable for aviation companies, as fuel accounts for a significant portion of their operating costs.
From a technical standpoint, Shah observed that the stock is showing signs of strengthening momentum and attempting to hold its recovery around the ₹5,400 level. He identified ₹5,450–5,500 as the immediate resistance range, adding that a sustained breakout above this zone could drive the stock towards ₹5,650–5,750.
On the downside, the ₹5,250–5,300 range is likely to act as an immediate support zone. Shah added that continued weakness in crude oil prices, along with a decisive move above the resistance band, could further reinforce the positive outlook for IndiGo shares.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsIndiGo shares: InterGlobe Aviation stock flying 5% high, among top Nifty 50 gainers | Buy? Target price, upside
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