Please refer to important disclosures at the end of this report
IndiGo, operated by Interglobe Aviation Limited (IAL) with a single aircraft has
grown its fleet over the years and is now leader in the domestic airline industry,
with a 39.8% market share as of January 2017 and 8
largest carrier in Asia
with over 41 million passengers carried in 2016. IAL’s robust growth seems to
continue owing to competitive pricing of air travel compared to its peers led b
growth in tourism and leisure travel and need for air travel driven b
geographical distribution of the Indian working population. The company has
been delivering best in class performance thereby gaining market share. Further,
management has maintained guidance of 133 aircrafts at FY17 end and
estimates available seat km (ASKM) growth of 25% YoY for Q4FY17. Also, the
company expects to end FY18 with more than the initially guided estimate of 154
planes. Despite being largely domestic focused IndiGo has aircraft utilization
levels being the best in the industry at around 11.6 Hrs/aircraft/day consistently.
Further, its comfortable liquidity position enables IndiGo to take delivery o
aircrafts and grow in a competitive scenario. The company has healthy Return on
Capital Employed (RoCE) of 45.6% and also has been maintaining a health
dividend payout of 79.6%. The company has a strong profit growth of 38%
CAGR for the last 3 years. Hence Buy.
CMP `977
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 85.9
MF / Banks / Indian Fls 2.1
FII / NRIs / OCBs 7.9
Indian Public / Others 4.2
Abs. (%) 3m 1yr 3yr
Sensex 12.6 15.8 34.8
Interglobe Aviation 18.6 9.0 N/A
Reuters Code N/A
BSE Sensex 29,332
Nifty 9,086
Face Value (
Market Cap (
cr) 35,314
52 Week High / Low 1095/790
Avg. Daily Volume 62,886
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Interglobe Aviation
Others |
March 24, 2017
Interglobe Aviation |
March 24, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Interglobe Aviation
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15