Shares of InterGlobe Aviation, parent of IndiGo, on Friday gained as much as 2.85 per cent to Rs 1,256 highest since May 31 last year.
Shares of InterGlobe Aviation, parent of IndiGo, on Friday gained as much as 2.85 per cent to Rs 1,256 highest since May 31 last year. The stock is up 19.6 per cent in the last three months as of Thursday’s close, outperforming the broader NSE 3.4 per cent gains in the same period.
The shares are trading at Rs 1,251.65, up 2.50 per cent or 30.50 points on BSE at the time of reporting.
“Reduced operations by Jet Airways and other stressed airlines combined with a significant increase in average ticket prices benefits Interglobe the most. As such the current move is fundamental driven and could continue further”, market expert Sandip Sabharwal told Financial Express Online.
Sharing his views, Gemstone Equity Research & Advisory Services’ Consultant Technical Analyst Milan Vaishnav, CMT, MSTA told Financial Express online: “Interglobe Aviation (INDIGO) has seen momentum returning after a long breather. The stock was under consolidation over past several week and off late, it was resisting to its 50-DMA since many days.”
“Today’s move with good volumes has lent credibility to the move and in the process it has crossed and moved past the 50-DMA. It now trades above all its key moving averages. Today’s move has resulted into initiation of a fresh trend which could see the stock testing 1275-80 levels. After this, it will have a previous gap to fill in the zone of 1280-1305 which can be slightly tricky. If this gap resistance is negotiated properly, then stock testing 1320 cannot be ruled out. On the downside, the stock now enjoys good support 1200-1220 levels,” he added.
Meanwhile, InterGlobe Aviation reported a 75 per cent fall in profit after tax at Rs 190.9 crore in the December quarter as high fuel prices and currency depreciation adversely impacted the bottomline.
The airline had a profit after tax of Rs 762 crore in the corresponding period of 2017-18. According to a release, the carrier’s total income rose over 28 per cent to Rs 8,229.4 crore in the three months ended December 2018. In the year-ago period, the same stood at Rs 6,409 crore.