With Jet grounded, IndiGo & SpiceJet stocks head for stars
InterGlobe Aviation, which runs IndiGoNSE 1.10 %, and SpiceJet have become the most expensive airline stocks globally, having soared amid the grounding of Jet Airways. InterGlobe has also entered the club of top 10 airlines in the world at a market capitalisation of $8.1 billion. InterGlobe and SpiceJet have gained 80 per cent and 77 per cent, respectively, in the past six months, outperforming the Bloomberg World Airlines index by 65 percentage points.
In addition, InterGlobe and SpiceJet now trade at FY20 price-earning multiples of 24 and 33, respectively.
Analysts continue to be bullish on the stocks and expect 30-50 per cent upside from the current levels. On April 22, Credit Suisse upgraded the target price on InterGlobe to Rs 1,800 from Rs 1,650 earlier. InterGlobe closed at Rs 1,472.30 on the BSE on Wednesday, up 0.3 per cent. SpiceJet fell 0.8 per cent to Rs 126.25.
