UBS maintains buy on InterGlobe Aviation, raised target price to Rs 2,150

UBS has maintained buy rating on InterGlobe Aviation in the long term and raised target price to Rs 2,150 from Rs 2,000. The stock ended down 2.65% at Rs 1,453.25 on Tuesday while the BSE Sensex closed 188.26 points down (-0.46%) at 40,966.86.

Company Financials

For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 9931.69 crore, up 22.53 % from last quarter sales of Rs 8105.19 crore and up 25.46% from last year same quarter sales of Rs 7916.22 crore. The company has reported net profit after tax of Rs 495.97 crore in the latest quarter.


The company’s top management includes Dr.Anupam Khanna, Mr.Anil Parashar, Mr.Meleveetil Damodaran, Mr.Rahul Bhatia, Mr.Rakesh Gangwal, Mrs.Rohini Bhatia, Ms.Pallavi Shardul Shroff. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2019, the company has a total of 384,796,279 shares outstanding.

Investment Rationale

Third quarter revenues surpassed expectations on better load factor, yield and ancillary revenues, said UBS. IndiGo's high growth can continue over the medium-term supported by aggressive network expansion for outbound travel, said UBS. Valuations are attractive as margins are at a cyclical low and earnings could continue to surprise on the upside, the brokerage said.