In a blow to aviation stocks, InterGlobe Aviation shares slid 4% Thursday after Citi lowered its price target. IndiGo’s parent faces a perfect storm of challenges, per the brokerage.
Target price down 10.5% to Rs 5,100 from Rs 5,700, with ‘Buy’ rating intact and 17% upside projected.
Key headwinds: Initial geopolitical disruptions, FDTL regulations causing Q3 flight cuts, and emerging Middle East conflicts disrupting global ops.
Fuel hikes and currency weakness add to the strain on earnings.
Positives persist: Strong January domestic market share rebound to 63.6%, underpinned by superior cost controls versus competitors.
Shares plummeted to Rs 4,194.10 intraday (-3.6%), trading at Rs 4,243.50 (-2.51%) by 2:55 PM. Down 14.80% monthly; 52-week high Rs 6,232.50, low Rs 4,035. Market cap Rs 1.64 lakh crore.