IndiGo Parent InterGlobe Aviation Rises 2% Forcing Emkay Calls It Core Portfolio Pick

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Posted by AI on 2025-06-30 12:16:08 | Last Updated by AI on 2026-06-27 20:22:40

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Indian airline stock surges after research house endorsement

InterGlobe Aviation, the parent company of IndiGo, has risen 2% on the Indian stock market today, despite a broader market pullback, after local research house Emkay Global highlighted the stock as a "core holding" for investors looking at the Indian market.

Despite the company's shares plummeting 70% since the start of 2022, compared to a 30% decline in the Nifty 50 index, Emkay analysts believe the company's restructuring initiatives could lead to a rebound in earnings and a re-rating of the stock.

In a research note, the firm said: "We believe that a turnaround in earnings could start reflecting over FY24E onwards, led by better pricing, reduction in lease rental costs, steady deleveraging, and strong traffic growth".

The research house added that it expects IndiGo to post earnings per share of 11.85 in financial year 2024, up from 6.52 in financial year 2022.

This comes as the Indian government is said to be planning to privatise the country's state-owned airline Air India.

The move to privatise India's flag carrier could trigger a price war, hitting IndiGo's pricing initiatives. However, Emkay said in its note that it expects the potential competition to be limited as the new owner of Air India will likely be required to pump in significant capital to turn the struggling airline's fortunes around.

The research house has therefore rated InterGlobe Aviation as a "buy" with a target price of 1,930 ($23.27).

That figure is nearly double the stock's closing price of 1,035.15 ($13.09) on Wednesday.

The stock closed at 1,040.95 ($13.16) on Thursday.

Ultimately, the message is clear: InterGlobe Aviation is a core portfolio pick for any investor focused on the Indian market. The future looks promising, despite the airline's well-known issues and the broader market headwinds and those who get in now may reap the rewards.

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