Shares of InterGlobe Aviation Ltd., the parent company of IndiGo Airlines, saw a boost on Monday after Citi maintained its ‘buy’ rating and raised the target price on the stock by Rs 100. The brokerage firm increased the target price from Rs 5,100 to Rs 5,200, reflecting a 15% upside potential.
Citi’s upgrade comes as the airline experiences a surge in passenger demand, notably driven by the Maha Kumbh festival, one of the largest religious gatherings in the world. This increase in demand has had a positive impact on IndiGo’s air traffic, contributing to the firm’s optimism about the airline’s performance in the near future.
The brokerage also placed IndiGo on a 90-day positive catalyst watch, indicating that it expects continued growth in air traffic and passenger numbers, which would further bolster the airline’s financial outlook. The positive outlook is tied to a broader recovery in India’s aviation sector, which is witnessing a gradual rebound from the pandemic-induced slowdown.
Citi’s upgrade reflects a belief in IndiGo’s ability to capitalize on this growth, particularly as the airline has positioned itself as a leader in the domestic market. With robust operational efficiency and strong market share, IndiGo is poised to benefit from the increased demand for both domestic and international flights.
The rise in target price and continued positive outlook from Citi signals growing investor confidence in IndiGo’s future performance, suggesting that the airline is on track for sustained growth as it capitalizes on favorable market conditions.
