INSUBCONTINENT EXCLUSIVE:
Citi has a sell call on InterGlobe Aviation with a target price of Rs 850.
The current market price of InterGlobe Aviation is Rs
1,072.90.
Time period given by the brokerage is one year when InterGlobe Aviation price can reach the defined target
While it is difficult to guess exact fare patterns, we note that airline operators launched a series of attractive discounts and offers over
was nearly 42 per cent in July, up nearly 340bps YoY, and nearly 80bps QoQ
We think that while competition is tough, IndiGo is focusing on market share even as profitability is being impacted
We think that SpiceJet, which is currently operating at nearly 94 per cent PLF and 12.3 per cent market share in the domestic sector
We admit that crude prices have also cooled off slightly, but the sharp decline in INR more than offsets any positive impact on profits
ATF prices in August are up nearly 42 per cent YoY
Our negative stance on IndiGo is predicated on a steep decline in profits due to: 1) elevated cost pressures, and 2) weak pricing, esp with
an increase in system-wide capacity.
