InterGlobe shares hit record high; Rs 3,030 or Rs 5,700, what's next?

Shares of InterGlobe Aviation Ltd (IndiGo) hit record high in Thursday's trade, as the airline's shared details of its strategic growth initiatives and future targets -- aim to double size by 2030 and achieve a fleet of 600-plus aircraft and 20 crore passengers annually. Following this, analysts remained 'neutral' to 'positive' on the stock with price targets ranging largely in the Rs 3,030-5,700 range.

IndiGo expects early double-digit year-on-year (YoY) capacity growth, supported by more than one aircraft delivery per week in Calendar 2025. Analysts said the confidence in supply-side stability reinforced the company’s expansion plans. Following this, the stock climbed 4.19 per cent to hit a record high of Rs 5,187 on BSE.

"IndiGo’s Analyst Meet takeaways are best brought out in terms of currencies (assets) that it will leverage, capabilities it endeavors to add, and conduct it aims to uphold. These translate into a guidance of almost doubling of capacity in the next five years, an uptick in the international share of capacity to 40 per cent, lowering the cost of aircraft ownership, improving fuel efficiency and growing the share of ancillary revenues," said Kotak Institutional Equities 

Kotak suggested a fair value of Rs 5,700 on the stock. Nuvama Institutional Equities has raised its FY25–27 EPS by 8–13 per cent on positive guidance. Premium valuations make risk-reward balanced, it said while retaining 'Hold' on the stock. This brokerage finds InterGlobe worth Rs 4,768 apiece. MOFSL has a target of Rs 4,660 on InterGlobe Aviation. 

"The stock is trading at 20 times FY26E EPS of Rs 248.90 and 10 times FY26 EV/Ebitdar. We reiterate our Neutral rating on the stock with a target of Rs 4,660, based on 8 times FY27 EV/Ebitdar," it said.

JM Financial called IndiGo stock fairly valued. It said the company plans to lower overall leasing costs with future financing to be equally split between operating leases and other sources. IndiGo, it said, remained focused to maintain a healthy cash balance (Rs 28,900 crore as of December 2024) in order to maintain balance between growth capex and risks from externalities. 

Jefferies maintain 'Buy' on InterGlobe Aviation and suggested  target price at Rs 5,700 per share.  

"We feel IndiGo’s expectation of 15% pa rise in industry air traffic (domestic & international) over FY25-30 is optimistic. While IndiGo has grown ahead of industry over the last decade, we expect it to grow at closer to industry rate over FY25-30. 2. We believe that IndiGo’s fleet addition in FY26F could be ahead of its ASK rise – detrimental for RASK," said InCred Equities. This brokerage sees the stock at Rs 3,030!