Shares of Interglobe Aviation Ltd., parent company of India’s largest airline by market share, IndiGo, fell 10% on Monday after the company reported a net loss for the September quarter, compared to a net profit in the same quarter last year.
This is the biggest single-day drop that shares of the airline have seen since February 2022.
Brokerage firm Kotak Institutional Equities maintained its “buy” recommendation on IndiGo but cut its price target to ₹5,200 from ₹5,400 earlier. It has also lowered IndiGo’s financial year 2027 earnings estimates by 10%.
The overall demand trend remains healthy as reflected in the unchanged double-digit full-year growth guidance and modest decline in TRASK on a high base.
Motilal Oswal remains “neutral” on IndiGo with a price target of ₹4,130, attributing the net loss to seasonality and highlighting that the guidance remains intact.
Goldman Sachs said that IndiGo’s September quarter’s EPS and profit below tax (PBT) was lower than what they had anticipated.
The brokerage though has maintained its “buy” rating on the stock but cut its price target to ₹4,800 from ₹5,300 earlier.
Out of the 22 analysts that have coverage on the stock, 16 of them have a “buy” rating on the stock, while three each have a “hold” and “sell” recommendation on the airline respectively.
Interglobe Aviation reported a net loss of ₹988 crore, compared to a net profit during the same quarter last year, while its EBITDAR Margin declined to 14.3% from 16.4% in the year-ago quarter.
EBITDAR stands for Earnings Before Interest, Tax, Depreciation, Amortisation and Restructuring or Rent costs.
IndiGo shares are currently down 10% at ₹3,933.75. The stock is down 22% from its recent peak of ₹5,035.
Content retrieved from: https://www.cnbctv18.com/market/interglobe-aviation-indigo-share-price-fall-q2-results-net-loss-estimates-cut-rating-returns-19499946.htm.
