InterGlobe Aviation, IndiGo Airlines' parent company, is seeing a significant upward trend in its stock price, marking the longest winning run since it was listed in November 2015. The stock has been on an upward trend for the twelfth consecutive day as of December 13, setting a new record for continuous gains, surpassing its previous record of 11 consecutive days of positive movement. The stock surged as much as 2.5 percent during intraday trading on this day, reaching a new all-time high of $3,006.90. It has now increased by 66 percent since its 52-week low of 1,810.45 on March 28, 2023.
The airline stock has increased by 17 percent in the last 12 trading sessions. This outstanding performance shows a strong and persistent positive trend, which is garnering investor attention and maybe indicating good sentiment towards the company. Because of the stock's recent record-breaking streak, investors and market participants will most likely continue to track its performance.
IndiGo shares have risen as a result of a dramatic drop in crude oil prices, which plummeted more than 4% on December 12. Brent Crude, the worldwide standard, is already approaching $73 per barrel, a level not seen since March 2023. This drop in oil prices is especially significant for airlines, notably IndiGo, because jet fuel expenditures account for approximately 40% of total expenses. Lower fuel costs have benefited not only IndiGo but also other airlines in the market, including SpiceJet, Air India, and Akasa.
The stock has also gained more than 42% in the previous year and nearly 50% in 2023 YTD, with positive returns in 8 of the last 12 months. It has increased 10% so far in December, extending advances for the third month in a row since October. It increased by more than 26% between October and December. It increased by 17.4 percent in May and decreased by 12.6 percent in February.
Meanwhile, in a December 1 report, brokerage house Kotak Institutional Equities maintained a 'buy' rating on InterGlobe Aviation and boosted its price objective to 3,300 per share. The brokerage business expects higher returns to last for an extended period of time, notwithstanding capacity restrictions. Despite the growing price disparity between aircraft and trains over the last three years, customers have not migrated considerably to the lower-cost AC rail option.
InterGlobe Aviation's earnings per share (EPS) are expected to be 175.2 in FY25E and 198.5 in FY26E, according to Kotak. The bullish outlook for IndiGo is due to the continued upside risks to yields in FY25.
This study underscores Kotak's bullish stance on the airline industry, particularly for IndiGo, given the predicted continuation of favorable pricing dynamics and possible profitability growth. This information may be useful to investors when making investing decisions about InterGlobe Aviation stock. IndiGo has broken out above the rounded bottom pattern at the 2,745 level, indicating that the medium-term uptrend is continuing.
The stock has broken out with a breakout gap, signaling that it is on the rise. It has closed above the upper weekly Bollinger band, generating a buy signal. On the weekly chart, the stock is producing a higher high-low formation and is holding above an upward-sloping trendline, indicating strong momentum. The RSI weekly strength indicator is bullish and above its reference line, indicating a positive bias.
