1 hr ago
IndiGo Shares Rise as Jefferies Sees Further Upside
IndiGo’s share price went up on Thursday.
Jefferies, an investment firm, still thinks people should buy the stock.
It believes the share price could rise by about 20%.
IndiGo is trying to spend less because operating costs are high.
It stopped using some wide-body aircraft through a leasing arrangement.
The airline also delayed salary increases for senior workers.
Jefferies expects IndiGo’s revenue and profits to improve in FY27.
However, fuel prices, a weaker rupee and aircraft supply problems could hurt the airline.
IndiGo shares rose 1.92% to an intraday high of Rs 4,947.30 on Thursday.
Jefferies retained its Buy rating and estimated about 20% upside for the stock.
IndiGo is cutting costs by ending its damp-leased wide-body programme and deferring senior employee salary hikes.
Jefferies expects IndiGo to move from a Rs 786-crore loss in FY26 to a Rs 1,978-crore profit in FY27.
Risks identified include crude and aviation fuel prices, rupee depreciation and aircraft supply-chain normalisation.
- Who
- IndiGo and Jefferies; IndiGo management also discussed its strategy and the appointment of Willie Walsh.
- What
- IndiGo shares rose while Jefferies retained its Buy rating and projected about 20% upside.
- Where
- The article does not specify a location for the share-price movement.
- When
- Thursday; financial estimates cover FY26 and FY27, while Willie Walsh’s appointment was discussed as taking effect in August.
- Why
- Jefferies cited IndiGo’s expected financial improvement, strong balance sheet and cost-efficiency efforts, while also identifying industry risks.
Key facts
- Share-price gain
- IndiGo shares rose 1.92% on Thursday.
- Intraday high
- Rs 4,947.30, compared with a previous close of Rs 4,854.
- Jefferies rating
- Buy, with estimated upside of about 20%.
- FY27 revenue estimate
- Rs 1,01,931 crore, compared with Rs 84,962 crore in FY26.
- FY27 EBITDA estimate
- Rs 17,710 crore, compared with Rs 12,720 crore in FY26.
- FY27 profit estimate
- Rs 1,978 crore, compared with a Rs 786-crore loss in FY26.
- Free cash
- Around Rs 39,000 crore, according to Jefferies.
Sources
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