Centrum Broking gives 'buy' call for IndiGo with target price of Rs 2,284

Brokerage house Centrum Broking has given a "buy" for Interglobe Aviation, which operates low-cost airline carrier Indigo, and it believes the airline is attractively poised for growth.

It has pegged the target price of Rs 2,284, as against its current market price of Rs 1,818.

India's domestic air traffic has nearly reached its pre-Covid levels and international traffic is fast scaling up after the resumption of scheduled international travel in March 2022.

"Fares meanwhile have strengthened from the lows of February 2022 and have offset the incremental burden of higher fuel costs," the brokerage said in a note.

IndiGo continues to consolidate its domestic leadership position and is making a major push towards international markets through codeshares, and the airline expects the international segment's share to reach 40 per cent in five years from 21 per cent during pre-Covid, it added.

"Improved fleet utilisation and lower maintenance costs should aid unit cost reductions. Any meaningful reduction in aviation turbine fuel costs should act as a major upside trigger for the stock."

--IANS

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