In today’s briefing:
- Interglobe Aviation (INDIGO IN | SELL | TP: INR2,513): Not Worth a King’s Ransom
Interglobe Aviation (INDIGO IN | SELL | TP: INR2,513): Not Worth a King’s Ransom
- InterGlobe Aviation Ltd (INDIGO IN) (Indigo) has turnaround and is on path to achieve record profits in FY2024 on strong demand, stable FX and lower jet fuel prices
- However, engine problems will hurt capacity deployment in 4QFY24 and FY2025, and the engine manufacturer has been very vague and unreliable in presenting its remedial plans
- Share price near all-time high and valuations (PE, EV/EBITDAR) are expensive compared to global LCCs. TP of INR2,513 (14% DOWNSIDE) pegged to 15x FY2025 PE (top-end LCC cycle)
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