Based on InterGlobe Aviation’s third quarter results, ICICI Securities has downgraded the stock to ‘hold’ with revised target price of ₹1,515.
“InterGlobe Aviation (IndiGo) will remain one of the biggest beneficiaries of the expected recovery from Covid with healthy signs of return of air traffic, steady PLFs complemented by strong balance sheet. Cash erosion has been stalled as of now with the liquidity measures taken by the company along with the advance sales/SLB profits, which has added to the business strength. Q3FY21 revenues came in lower than expected on account of lower yields. Expected delay in return of corporate traffic could lead to lower fares, which will put pressure on earnings in FY21. Q3FY21 adjusted loss stood at ₹820 crore. Post the 22% rally in stock price over the past three months, we downgrade the stock from Add to HOLD,” said the brokerage.
Interlobe Aviation Ltd , which runs India’s biggest airline IndiGo, reported its fourth straight quarterly loss on Thursday, as the Covid-19 pandemic kept air travel well below normal levels.
