Kotak gave a big boost to the fair value of InterGlobe Aviation’s stock, the share rose sharply.

Indigo Share Price: The stock of InterGlobe Aviation, which operates an airline under the IndiGo brand, may see a strong rally in the coming days. Kotak Institutional Equities has raised the fair value of InterGlobe Aviation’s stock to Rs 4,300 per share, about Rs 700 higher than the stock’s current level, in a research report. Due to this Kotak report, the stock is witnessing a huge rise. Shares of Interglobal Aviation are trading at Rs 3596, up 2.71%.

Kotak Institutional Equities said in its report that the overall airlines face another year of loss in FY 2023-24. But market leader Indigo’s profits are steadily increasing. According to the report, these combined airlines may have to increase air fares to make a profit. If this happens, Indigo will benefit greatly. This will lead to a huge increase in IndiGo’s profitability and may cross past historical levels of profitability before normalizing. Due to which Kotak Institutional Equities has estimated the fair value of Interglobe Aviation at Rs 4300 per share.

In its recently released report, rating agency ICRA has said that overall airlines may incur a loss of Rs 30 to 40 billion in the financial year 2023-24. While Indigo has earned a profit of more than 60 billion rupees during the three quarters of the current financial year.

Interglobe Aviation has benefited the most from growing travel tourism in the country. The company’s stock has returned 88 percent in the past one year. The stock is up about 22% in 2024. And in 6 months the share has given a profit of 42%. The stock has ranged from Rs 1865 to Rs 3600 in a year. Interglobe Aviation’s market capitalization has reached Rs 1.39 lakh crore.

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