IndiGo shares hit 52-week high as Motilal Oswal upgrades to buy rating, sees 27% upside

The shares of InterGlobe Aviation-owned IndiGo climbed as much as 3.8% on Tuesday to a 52-week high of Rs 5,345 on the BSE after brokerage Motilal Oswal upgraded its rating on the stock to ‘buy’ and raised its target price to Rs 6,550, implying a potential upside of nearly 27% from the stock’s last closing level.

The brokerage said it sees IndiGo as the “best domestic consumption play,” supported by favourable domestic demand and softer Brent crude prices, which bode well for the airline. Motilal Oswal now values the stock at 10x FY27 estimated EV/EBITDAR.

IndiGo, India’s largest airline, has seen its shares surge 42.5% over the past year, with a 12% gain in the last month and a 5.5% increase in the past week. The stock is trading above all eight of its key simple moving averages, including the 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day Relative Strength Index is at 62.9, indicating strength without being overbought.


Motilal Oswal said IndiGo has maintained profitability over the last two years, aided by market share gains following GoFirst’s insolvency, international expansion, and new codeshare agreements. “INDIGO has undertaken an ambitious fleet expansion by placing orders for 925 aircraft set to be delivered by CY35—one of the largest in global aviation history,” the brokerage said.


The brokerage also highlighted that the Indian aviation sector is on a strong growth trajectory, with domestic passenger traffic expected to double by 2030, boosted by a growing middle class and infrastructure development. IndiGo, it said, is well-positioned to benefit from this upswing, targeting a fleet of over 600 aircraft and 200 million passengers annually by the end of the decade.

Motilal Oswal added that the airline continues to outperform domestic peers on operational parameters like punctuality, cost control, and aircraft utilization. The brokerage said it expects a fourth-quarter FY25 EPS of Rs 34.5, as IndiGo maintained its full-year guidance in its analyst meet held in March.

The brokerage cautioned that risks to the outlook include potential delays in wide-body aircraft deliveries, sharp crude or currency volatility, and a shift toward more premium seating that could undermine the company’s cost leadership.

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