Here's What Analysts Made Of IndiGo's Q1 Loss
Shares of IndiGo's parent fell after India’s largest airline reported higher-than-expected Q1 loss.
Shares of InterGlobe Aviation Ltd., fell after the parent of India’s largest airline IndiGo reported higher-than-expected loss in the first quarter as the second wave of the pandemic disrupted air travel.
Net loss of InterGlobe Aviation stood at Rs 3,179 crore in the April-June quarter, up from Rs 1,159 crore in the preceding three months, according to an exchange filing.
Shares fell for the second straight session on Tuesday, dropping as much as 4.6%—to the lowest in almost two months.
Of the 22 analysts tracking Indigo, 11 recommend a ‘buy’, three suggest a ‘hold’ and eight have a ‘sell’ rating, according to Bloomberg data.
Here's what brokerages have to say about IndiGo after the first-quarter earnings:
Motilal Oswal
Maintains ‘neutral’ rating with a target price of Rs 1,600, implying a downside of 9% from Tuesday’s close.
IndiGo missed estimates owing to lower-than-expected revenue passenger kilometer.
Scathing concern over yields resurface.
Lowered FY22/FY23 yield estimate to Rs 3.65/3.7 from Rs 3.8/3.8. Yields would continue to remain under pressure until demand recovers
Cash burn increased to Rs 35 crore a day in Q1FY22 (from Rs 19 crore a day in Q4FY21).
Prabhudas Lilladher
Maintains ‘Hold’ rating with a target price of Rs 1,630, implying a downside of 4.45% from Tuesday’s close.
Lowered IndiGo’s FY22/FY23 EBITDAR by 89.8%/0.4% because of second wave deferring recovery by six to eight months and a sharp rise in crude oil prices
Continues to remain better placed than its peers and is likely to emerge stronger post Covid due to its superior balance sheet, industry-leading cost structure, and strong management team.