Interglobe Aviation Q2 Results Review - Net Loss Led By Seasonality But Guidance Remains Intact: Motilal Oswal

For Oct-2024, the company is seeing solid demand led by the festive season, and the management believes there would be a natural comeback in demand in Q3, adds the brokerage.

An aircraft operated by IndiGo, a unit of Interglobe Aviation Ltd., on the tarmac in an airport.(Image for representation. Photo: Vijay Sartape/NDTV Profit)

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Motilal Oswal Report

Interglobe Aviation Ltd. is striving to improve its international presence through strategic partnerships and loyalty programs. It served 106.7 million customers in FY24, with a net increase of 63 aircraft.

The company had eight strategic partners with a 27% international share in terms of available seat kilometres in FY24.

The management has also taken several preemptive measures to increase its global brand awareness as it expects to capture a bigger share of growth in the international market over the coming years.

IndiGo is further enhancing its international travel and working relentlessly to adjust schedules to reassure customers.

The stock is trading at ~20 times FY26E earnings per share of Rs 222.9 and ~10 times FY26E enterprise value/Ebitdar.

We reiterate our Neutral rating on the stock with a target price of Rs 4,130, based on 8.5 times Sep’26E EV/Ebitdar.

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Motilal Oswal IndiGo Q2FY25 Results Review.pdf
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Also Read: IndiGo Q2 Results: Airline Reports Quarterly Loss For The First Time In Two Years

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