Global brokerage firm Citi has reaffirmed its positive outlook on Interglobe Aviation, maintaining its existing ‘Buy’ rating. Additionally, the firm has raised its target price for the company’s stock to ₹5,200, up from the earlier projection of ₹5,100. This upward revision reflects Citi’s expectations of improved yields for Interglobe Aviation in the fourth quarter of the financial year 2025 (Q4FY25). The brokerage attributes this anticipated growth to a surge in demand, which is expected to drive better financial performance for the company during the period.
The optimistic outlook from the foreign brokerage firm is further supported by the sustained strength in air traffic demand and IndiGo’s commanding market share within the Indian aviation sector. In addition to maintaining its positive stance, the brokerage has placed the stock under a 90-day positive Catalyst Watch, signaling the potential for favorable developments over the short term.
According to Citi’s analysis, there is an expected notable improvement in Passenger Load Factors (PLFs), which serve as a key indicator of capacity utilization in the airline industry. This anticipated rise in PLFs during the fourth quarter of the fiscal year 2025 (4QFY25) is particularly significant, as this period is typically marked by weaker seasonal demand. The projected surge in PLFs reflects strong consumer demand for air travel, with IndiGo expected to benefit substantially due to its dominant position in the Indian market.
One significant factor driving the rise in air travel demand is the Maha Kumbh, a major religious event held in Uttar Pradesh. This large-scale gathering attracts millions of pilgrims and visitors from across the country and abroad, leading to a substantial increase in passenger traffic at airports in the region. According to Citi, this surge in air travel associated with the event is expected to positively impact IndiGo’s performance. The brokerage anticipates that the heightened demand will contribute to improved yields for the airline during the fourth quarter of the fiscal year 2025 (4QFY25), as more passengers are likely to book flights to attend the religious festivities.
The initiation of a 90-day positive Catalyst Watch by Citi highlights the brokerage’s anticipation of favorable developments for Interglobe Aviation in the near future. This designation suggests that the firm expects certain events or market conditions to positively influence the company’s performance within this time frame.
Additionally, Citi’s sustained optimistic outlook on the company could be perceived by investors as a sign of confidence in Interglobe Aviation’s growth potential. This continued positive sentiment may attract increased attention from market participants, potentially driving greater interest in the company’s stock in the short term.
Over the past year, shares of IndiGo have demonstrated significant growth, recording an increase of 45.64%. This notable rise reflects the company’s strong performance and market momentum over a 12-month period. However, when considering the year-to-date (YTD) performance, there has been a slight decline of 1.78%, indicating some recent fluctuations in the stock’s value since the beginning of the current calendar year.
In the medium term, the stock has shown a positive trend, with a 4.91% increase over the last six months. This suggests a gradual recovery or steady growth during this period. Additionally, the company’s performance over the most recent three-month period has been particularly strong, with the share price gaining 10.81%, highlighting short-term positive momentum in the stock’s valuation.
On Friday, IndiGo shares ended the trading session relatively unchanged, closing at ₹4,509.60 on the Bombay Stock Exchange (BSE), reflecting a stable performance for the day.
Technical Performance of IndiGo
At present, IndiGo shares are trading above all key exponential moving averages (EMAs) across short-, medium-, and long-term timeframes. This positioning suggests a generally positive trend in the stock’s price movement over various periods. Additionally, data from Trendlyne indicates that the stock’s Relative Strength Index (RSI) is hovering around the 61.4 level. An RSI reading near this mark typically suggests that the stock is in a neutral to slightly bullish zone, indicating balanced momentum without being overbought or oversold.