Shares of InterGlobe Aviation Ltd, which runs India’s largest airline IndiGo, are 17% higher than their pre-covid highs of early 2020.
Investors appear to have concluded that the company has come out far stronger after the pandemic, especially when compared to its weaker rivals. This is reflected in the company’s market share in domestic aviation. In the March quarter this year, its market share stood at 54%, up from 48% a year ago.
“But while market share is higher, this has come at a great cost. Notice that the firm’s net worth has almost completely evaporated,” says an analyst at a domestic institutional brokerage.
