Interglobe Aviation - Sky Is The Limit: Motilal Oswal

Motilal Oswal Report

Interglobe Aviation Ltd. is working to increase its international presence through strategic partnerships and loyalty programs. The company has added seven new destinations and 19 routes in FY24. The company has eight strategic partners with 27% international share in terms of available seat kilometres in FY24.

The management is also making efforts to increase its global brand awareness, as it expects to capture a bigger share of growth from its international market in the coming years. However, competition in the sector is expected to intensify with the resurgence of Air India and the entry of a new player.

While we remain positive about the aviation sector, we believe IndiGo would have to navigate through various challenges in the near to medium term.

We reiterate our Neutral rating on the stock with a target price of Rs 3,510, valuing it at 7.5 times FY26E enterprise value/Ebitdar.

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