After Interglobe Aviation (IndiGo) reported a five-fold jump in its Q4 profit, the stock is trading higher in the intraday trade today. The shares jumped as much as 3 per cent on BSE after closing at Rs 1662.15 on Monday. The company posted a net profit of Rs 589.6 crore in Q4FY19 up from Rs 117.6 crore in the corresponding period of the last fiscal. In the December quarter, the company had posted a 75 per cent year-on-year fall in profit after tax (PAT). The brokerages have come out with their analysis on how to go about trading the shares of the airline. Here’s what should the investors do going ahead:
Credit Suisse
The brokerage maintains ‘outperform’ rating on the stock with a target of Rs 1,800 from the current market price, even as it says the numbers were marginally below its estimates. The yields along metro and non-metro routes remain strong, it added.
Also read: HDFC twins, ICICI, Axis Bank lift Sensex, Nifty to fresh closing highs; key highlights
CITI
The brokerage maintains ‘sell’ rating on the stock with a target of Rs 1,300 from the current market price. It believes that the market share of the airline has peaked. Even as seasonally strong Q1 could see better yields, fares are plateauing, it added.
Prabhudas Liladher
The brokerage has a ‘buy’ rating on the stock with a target of Rs 1,948 from the current market price. The high yield environment is expected to improve profitability of the airline, it added. FY20 and 1Q20 capacity is expected to grow at 30 per cent, it said, adding passenger traffic may grow at 12-14 per cent in FY20.
The shares of Interglobe Aviation were trading at Rs 1,674.95, up 12.80, or 0.77 per cent on BSE at the time of reporting.