The parent company of IndiGo, InterGlobe Aviation Ltd., saw its shares rise 0.81 percent during intraday trading on Thursday, reaching an all-time high of Rs 3,573.70. In the end, the stock dropped 0.02 percent, closing at Rs 3,544.50. With a target price of Rs 3,961, brokerage Prabhudas Lilladher (PL) has maintained its 'Accumulate' call on the counter, indicating a possible upside of 11.75 percent.
According to PL, IndiGo intends to add more than one aircraft per week, boost capacity by early double digits, introduce ten new destinations to the network, and hire between 5,500 and 6,000 new staff members in FY25E.
Growth expectation of early double digits indicates IndiGo is well-positioned to overcome supply chain concerns, the company said, notwithstanding the intensification of engine troubles at P&W. The airline now has about 960 aircraft on order, and PL said that consistent delivery of the 500 new aircraft ordered in 2023 is anticipated.
"India is one of the aviation markets with the highest rate of growth in the world, and in FY30E, passenger traffic is expected to quadruple to 51 crore. Additionally, there will probably be 220 airports. Significant funding and MRO possibilities are anticipated to arise in India as a result of the aviation industry's robust expansion," the statement went on.
Additionally, PL pointed out that, contrary to prior expectations that it would remain flat, yield is expected to climb in Q4 of FY24.
According to Pieter Elbers, the chief executive of IndiGo, the airline aspires to quadruple its size by 2030 by adding new destinations and domestic and international flights, matching India's potential for economic growth.
With a little over 60% domestic market share, the nation's biggest airline is also placing a huge wager on A321 XLR aircraft, which are anticipated to join its fleet "somewhere in 2025," in an effort to increase its global footprint.
The CEO of IndiGo stated that one jet will arrive each week and that the airline's capacity projection for seat capacity is "early double digits" for the upcoming fiscal year, which begins in April 2024.
Currently, Turkish Airlines, British Airways, Qatar Airways, American Airline, KLM-AirFrance, Qantas, Jetstar, and Virgin Atlantic are codeshare partners of IndiGo. By using codesharing, an airline may book customers on partner airlines and offer smooth travel to a number of locations.
