Interglobe Aviation (Indigo) Shares Come Crashing Down; Drops 25% In 2-Days

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Shares in Interglobe Aviation came crashing down again, dropping another 5 per cent in trade. Investors continue to be disappointed with the company's quarterly results.

The shares dropped as much as 20 per cent on Friday and were down another 5 per cent in trade today. The stock was last quoting at Rs 925 on the NSE.

Interglobe Aviation (Indigo) Shares Come Crashing Down; Drops 25% In 2-Days
Dealers say that the 9-month performance was really bad with net profits slipping. "IndiGo's nine-month performance in FY16 was much below estimates due to a sharp fall in profitability in the second quarter, where net profit declined to Rs 110 crore from Rs 640 crore in the first quarter," said Kotak Securities.

The stock of IndiGo Airlines had run-up very sharply in the last few weeks and investors were wary as fundamentals also had to play catch-up.

Some analysts had warned that the movement of the share prices is closely linked to crude prices. Should we at some stage see a recovery in crude prices, it may lead to a drop in prices of the shares of IndiGo.

Despite the drop, the shares of the company are still significantly higher than the offer price of Rs 765.

GoodReturns.in

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