InterGlobe Aviation hit all-time high after it orders 30 Airbus aircraft; brokerages increase targets
InterGlobe Aviation, the parent company of IndiGO, hit an all-time high of Rs 3,958.65 on BSE on Friday (April 26, 2024) after the company announced that it was entering the wide-body space with an order for 30 Firm Airbus A350-900 aircraft.
The IndiGo stock that opened at Rs 3,855.95 rose to the an all-time high of Rs 3,958.65, a 3.76 per cent jump from its previous close of Rs 3,815.05.
The stock of the airline was trading higher by 2.31 per cent, or Rs 88.00, at Rs 3,903.05 at 10:51 am on Friday.
IndiGo said that it was defining its long-term future by strengthening its fleet with the introduction of wide-body aircraft to its fleet.
“IndiGo agreed to place an order for 30 Firm A350-900 aircraft, which will enable IndiGo to spread its wings further and expand its network. From the various Indian metros, IndiGo will be able to connect to the world. The aircraft will be powered by Rolls Royce’s Trent XWB engine,” IndiGo said.
“The mission capability of this aircraft coupled with the efficiency of the Trent XWB engine will offer IndiGo unprecedented optionality as it embarks on the next stage of its wonderful journey of addressing the rapidly evolving needs of the Indian customer and our nation.” it said.
This deal could be worth up to Rs 75,000 crore, as per Reuters.
The delivery of aircraft is expected to start from 2027.
The company has purchase rights to purchase an additional 70 Airbus A350 Family aircraft.
A total of 1,000 outstanding orders were booked for the company’s A320 family aircraft.
The company will hold analyst and investor call on April 30 at 5 pm.
As many as 80.86 lakh passengers flew by IndiGo aircraft in March.
The company is leader with a 60.5 per cent market share.
Currently, IndiGo operates over 350 aircraft.
What brokerages say about InterGlobe Aviation
Morgan Stanley has maintained an ‘overweight’ rating on IndiGo with a target of Rs 4,145.
Jefferies has upgrade it to ‘hold’ from ‘underperform’, raising the target to Rs 3,435 from Rs 2,500.
It says that IndiGo has strong capacity growth guidance while its grounding impact appears contained.
The brokrage says that the airline has precarious capacity situation impacting growth/elevated yields in near term.
Regulating pilot fatigue may still constrain capacity growth and support pricing.
JP Morgan has maintained an ‘overweight’ stance on the firm, raising its target to Rs 3,670 from Rs 3,470.
Goldman Sachs has maintained a ‘buy’ call on the firm, raising the target to Rs 3,600 from Rs 3,500.
