Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
868.80
Change Change %
7.00 0.81%

Updated:19 Sep, 2018, 15:55 PM IST

BSE
871.20
Change Change %
9.70 1.13%

Updated:19 Sep, 2018, 16:01 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Edelweiss
N/A
01-08-2017 Hold 1281.00 1330.00
N/A
Target Hit Long (1Y)
01-08-2018

Edelweiss maintains hold on InterGlobe Aviation

InterGlobe Aviation's (IndiGo) Q1FY18 EBITDAR (up 28% YoY) surpassed estimates by 9% on: 1) 4% better-than-expected yields - yields improved 2% YoY to INR3.83/km after the 11% YoY dip in FY17; 2) Robust RPKM growth (25% YoY) surpassed capacity addition (ASKM growth of 19%), driving 470bps YoY improvement in PLFs (at 88%); 3) Despite the sharp 16% YoY rise in fuel price, overall cost/ASKM growth was controlled at 1% due to induction of NEOs (15% more fuel efficient) and 2.6% lower cost /ASKM (ex fuel). Indigo plans to own more aircrafts, a shift from its earlier sale-and-lease model, which could potentially result in cost benefits. We expect robust 27% EBITDAR CAGR over FY17-19 and raise FY19E EV/EBITDAR to 9.2x (from 8.0x), yielding target price of INR1,330.

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