Indigo shares near record high as raw sheds; Motilal Oswal calls it “best consumer game”

Last updated:April 15, 2025, 10:50 is

The shares of the Interglobe Aviation, the parent company of Indigo, rose by over 3% in early trade on April 15 and approached record highs. Check the new price target

Indigo (FileFoto)

Course of the Indigo share: The stocks of Interglobe Aviation, the parent company of Indigo, rose by over 3% early on April 15 and approached record highs. The rally took place after Motilal Oswal had improved the share with a price target of 6,550 rupees to a purchase on a “purchase”, with the strong recovery of the domestic, strategic expansion plans and a supportive cost environment that was driven by the cooling prices.

In his latest research Note, the broker company Indigo described the “best domestic consumption game”, which was supported by the increasing demand for air travel in India and the ongoing expansion on international routes. However, the largest tailwind comes from the soft raw outlook. Brent crude oil is expected to make it easier from the GJ 26-27 to $ 65 per barrel, as they increase a possible rollback from Opec+ preservation reductions and increasing global inventories.

“Since aviation turbine fuel is almost 40% of total operating costs, lower raw prices lead directly to better margins,” said Motilal Oswal.

The company expects indigos EBITDA and profit before taxes (PBT) with a composed annual interest rate of 28% and 38% between the financial year 25 and 27. This growth is powered by steady aircraft deliveries, the expansion of codeshare partnerships and the scaling of its freight business. In addition, Indigo used Gofirst from the market, won market shares and further strengthened its management position.

Indigo’s international operations are ready to benefit from Donald Trump’s statements about auto tariffs, which are interpreted as a broader softening of global trade dependencies.

For Indigo, which expands aggressively international paths and the establishment of its Codeshare network, a stable and less demanding trading environment of the keys would be to profitably use new markets.

At the current level, the shares are acting on the 20 -fold FJ26 P/E and 9.7x FJ26 EV/EBITDA, which Motilal Oswal is considering appropriately in view of the Marge back wind and the scaling advantages. “The consistent profitability after the Koviden emphasizes the execution skills and the strategic clarity of management,” added the note.

Indigo recently wrote history by overtaking global majors like Delta Airlines and Ryanair in order to become the most valuable airline in the world in terms of market capitalization.