IndiGo share price: Brokerage firm Kotak Securities remained positive about the stock maintaining a buy call.
IndiGo share price: The share price of IndiGo rose almost 3 per cent as it hit its fresh record high of ₹3,339 on BSE today (March 19). The stock opened at ₹3256.45 against its previous close of ₹3248.10 on March 18. The share price rose about 2.8 per cent to hit its fresh all-time high level and traded 1.25 per cent higher at ₹3,288.65. In the past one year, the stock has gained about 72 per cent, outperforming the equity benchmark Sensex which gained 25 per cent in the same period.
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What Kotak said on IndiGo?
Brokerage firm Kotak Securities remained positive about the stock maintaining a buy call on it as it raised the target price to ₹4,200 indicating a 30% upside potential.
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“We estimate the country to grow aircraft capacities by 11 per cent over FY24-30 and seat capacities at slightly higher CAGR. At the same, we build in some part of the risk of the Boeing Exposure (more than 25 per cent of a backlog of Indian Carriers) getting deferred beyond its timeline,” Kotak said, adding, “IndiGo has shared a 2030 capacity guidance suggesting 11-12 per cent CAGR in the fleet count and a slightly higher CAGR for ASK (available seat kilometres) and is well-placed to deploy this capacity across domestic and international routes. Pricing, the one variable for IndiGo, may not see a meaningful impact from competition.”
Moreover, opening of new airports may lead to healthy growth in demand over a base not yet fully served by Indian carriers, Kotak asserted.
