IndiGo Stock Takes Off! Flies to 52-Week High After Motilal Oswal's Upgrade; Know Details

IndiGo share price today: Shares of InterGlobe Aviation surged to touch their 52-week high mark on Tuesday, April 15. Heightened investors' interest for IndiGo stock has come after brokerage firm Motilal Oswal initiated an upgrade for the company scrip.

IndiGo Share Price Today

IndiGo shares touched their 52-week high mark of Rs 5,345 apiece on BSE on Tuesday, Aprol 15. The company scrip was trading 2.43% higher at Rs 5276.25 on BSE. Its market capitalisation stood at Rs 2,03,876.97 crore. The stock hit its 52-week low mark of Rs 3,443 on 19 Apri, 2024.
Despite market correction, the aviation stock's valuation has surged over 14.97 % year to date, in contrast to Nifty which has declined 2.25% during the same period. In one month IndiGo scrip value has increased over 12.31% on BSE.

IndiGo Share Price Recommendation: Motilal Upgrades To Buy

Brokerage firm Motilal Oswal has initiated a buy rating for the stock and has also fixed a target price for stock market investors. According to Motilal Oswal, the Indian aviation firm is likely to benefit from the unexpected cuts by OPEC+ and other projects.
"We upgrade INDIGO to BUY with a TP of INR6,550, valuing it at 10x FY27E EV/EBITDAR. Softer Brent crude assumptions at USD65/bbl for FY26-27E, driven by the expected unwinding of OPEC+ cuts and a projected supply surplus, support margin expansion," noted Motilal Oswal in its brokerage report on April 15.

Amid surge in air travel demand, IndiGo is well placed to utilise the opportunity and expand its operation and benefit from surging domestic air travel demand. Aircraft fuel makes up 40% of the cost, hence fall in fuel price is likely to benefit IndiGo's business in the long run. The company would be able to benefit from its pending aircraft deliveries on their completion. It would help it in implementing international expansion to new routes.

"The stock trades at 20x FY26 P/E and 9.7x FY26E EV/EBITDA. We estimate EBITDA/PBT CAGR of 28%/38% over FY25-27E. Continued codeshare agreements and focus on the cargo business further support growth, while consistent profitability post-Covid underscores management execution and strategic positioning," noted Motilal Oswal in its report.

Surge in IndiGo share prices coincides with a boisterous stock market rally on Tuesday, where Nifty opened nearly 2% higher. Nearly all the broad market indices opened in green today after United States President Donald Trump announced a 90-day pause on tariffs, he had announced earlier. Auto stocks including Tata Motors, Samvardhana Motherson, etc rallied today. Additionally, several banking sector stocks also showed strong momentum.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.