After the shares of IndiGo’s parent Interglobe Aviation tumbled on Friday following Aditya Ghosh’s exit, Raamdeo Agrawal of Motilal Oswal said that every panic opportunity in IndiGo stock is a terrific opportunity to buy.
After the shares of IndiGo’s parent Interglobe Aviation tumbled on Friday following Aditya Ghosh’s exit, Raamdeo Agrawal of Motilal Oswal said that every panic opportunity in IndiGo stock is a terrific opportunity to buy. “Aditya Ghosh had been one of the finest persons and the face of IndiGo. But in businesses what matters is the strategy and the whole team,” Raamdeo Agrawal told CNBC TV18, adding that the company will be able to find an equally competent leader.
“If you can’t find a guy as competitive, you split the role and get two guys. IndiGo is much bigger than individual for that matter. Market may react negatively on Monday, they already have on Friday. If that happens due to panic, I think it’s a terrific opportunity to buy the shares,” he told the channel.
Elaborating further, he said, “I don’t think the prospect of the company or the business has anything to do with one individual, and its not going to change.” Interestingly, the shares of IndiGo tumbled nearly 7% intra-day on Friday, following Ghosh’s exit. “In about three months, it will be ten years for me in my role as the President of IndiGo and twelve years since IndiGo took to the sky. It’s been an exhilarating ride to say the least. Non-stop and relentless,” Aditya Ghosh wrote in a letter to employees last week.
In a matter of about twelve years, IndiGo has risen from a single aircraft company to become India’s largest airline by market share. Started in August 2006 as a low-cost carrier, the airline now has a fleet of 161 aircraft. Apart from garnering the highest market share at about 40% currently, IndiGo is also India’s largest listed airline company by market share. Commanding a whopping 55,000 crore market capitalisation.Notably, despite its huge market share, IndiGo has been the only consistently profitable domestic airline since 2009. IndiGo shares were trading nearly 0.75% up at Rs 1,414.75 on Monday morning.