{"id":331538,"date":"2020-01-30T12:11:31","date_gmt":"2020-01-30T06:41:31","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=331538"},"modified":"2020-01-30T12:11:31","modified_gmt":"2020-01-30T06:41:31","slug":"analyst-corner-maintain-buy-in-indigo-with-target-price-of-rs-1750","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/analyst-corner-maintain-buy-in-indigo-with-target-price-of-rs-1750\/","title":{"rendered":"Analyst Corner: Maintain \u2018buy\u2019 in IndiGo with target price of Rs 1,750"},"content":{"rendered":"<p>IndiGo\u2019s Q3FY20 results were ahead of expectations \u2014 the demand environment improved in November-December, post a soft October, which led to the earnings beat. The revenues grew ~25% y-o-y due to an improvement in yields (+10 q-o-q) and higher ancillary revenues (+29% y-o-y). We roll forward and set a December 2021 TP of Rs 1,750 (@6x EV\/Ebitdar). Maintain \u2018buy\u2019.<\/p>\n<p>Net revenue growth of ~25% was driven by ASKM growth of +19% y-o-y and higher yields (+10% q-o-q, flat y-o-y) in a seasonally strong quarter. The Ebitdar margins were ahead of estimates at 18.2% due to lower fuel costs and forex gains of Rs 120 crore. The engine maintenance costs are now settling at ~Rs 1,600 crore\/quarter and are expected to normalise once the older CEO planes are phased out over the next 2 years.<\/p>\n<p>IndiGo is guiding for ASK growth of 20% through FY21. Pricing in the domestic segment has held up by the non metro to non metro routes, while that in metros has been impacted by competition. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>IndiGo\u2019s Q3FY20 results were ahead of expectations \u2014 the demand environment improved in November-December, post a soft October, which led to the earnings beat. The revenues grew ~25% y-o-y due to an improvement in yields (+10 q-o-q) and higher ancillary revenues (+29% y-o-y). We roll forward and set a December 2021 TP of Rs 1,750 (@6x EV\/Ebitdar). Maintain \u2018buy\u2019. Net revenue growth of ~25% was driven by ASKM growth of +19% y-o-y and higher yields (+10% q-o-q, flat y-o-y) in a seasonally strong quarter. The Ebitdar margins were ahead of estimates at 18.2% due to lower fuel costs and forex [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[196,130,138],"tags":[],"class_list":["post-331538","post","type-post","status-publish","format-standard","hentry","category-civil-aviation-the-financial-express","category-newspapers","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/331538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=331538"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/331538\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=331538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=331538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=331538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}