IndiGo Share Price Hits 52-Week High After UBS Raises Target Price

Business View
4 Min Read

Tuesday’s stock market has witnessed a 2% hike in IndiGo share price. The gain in the share price of IndiGo is a hit of a 52-week high after foreign brokerage company UBS lifted the target price on the stock. The international brokerage firm continued to project optimism, pointing to the robust development potential of India’s aviation sector, gains in market share globally, an effective cost structure, and superior operational performance. The share price of IndiGo rallied 2.13% to a new high of Rs 3,355.50 apiece on the Bombay Stock Exchange (BSE). 

Reiterating its Buy recommendation for IndiGo shares, UBS increased its 12-month target price per share from ₹3,900 to ₹4,000. This suggests a gain of over 21% from the closing price on Friday. While talking about IndiGo share price, UBS noted that “Despite factoring in higher crude prices and pilot salaries, our estimates are flat to higher, driven by better Available Seat Kilometres (ASK) growth and yields. Also, we continue to see upside risks to our yields in the near term and capacity/demand growth and profitability over the medium term.” 

The global brokerage business added in its statement that high demand is expected to lead to consensus estimate improvements in the short future, which is still beneficial.USB went on to say, “We believe that the low double-digit ASK growth in the 2025 financial year, combined with the near-term YoY yield growth, is encouraging and should lead to strong near-term earnings.” Additionally, the firm anticipated that more aircraft will be grounded shortly, so the AOG figure should be consistent at its current level, giving considerably better visibility and consistency to capacity and earnings.” 

It is worth noting that InterGlobe Aviation, the operator of Indigo Airlines is the largest commuter airline in India, with a domestic capacity share of 55% in the Financial Year of 2023. During the Financial Year of 2024, IndiGo brought 10 new domestic and 7 international destinations. Its share of international travel rose to 27% of ASK in FY24E from 23% in FY23.

At 09:50 AM, IndiGo shares were trading 0.98% higher at Rs 3,317.65 apiece on the BSE. 

What Are Other Stocks That Will Be Beneficial To Buy? 

Despite the rise of 2% in IndiGo’s share price, Nifty50 traded lower on Tuesday, 26 March, amid weak global indications and the absence of fresh domestic triggers. The share market opened at 21,947.90 on Tuesday with a downfall in comparison to the closing of the previous session. In the previous session, Nifty 50 closed at 22,096.75. At 11:30 AM, the index was 0.26% down at 22,038.85. 

At this point, experts advise investing in technically and fundamentally sound stocks. Here we are sharing the list of 12 stocks that will be good to buy for the upcoming 3 to 4 weeks.

  • Juniper Hotels
  • SJVN
  • Indus Towers
  • Parag Milk Foods
  • Power Grid Corporation of India
  • Olectra Greentech
  • Bajaj Finance
  • Coal India
  • Borosil Renewables
  • Cummins India
  • PB Fintech
  • JSW Energy

The Above list has been recommended by several experts, but still, it is advisable to purchase at your own risk. 

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