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InterGlobe Aviation share price rises over 12% despite Rs 871 crore loss in Q4

Share price of InterGlobe Aviation touched an intraday high of Rs 1,064.95 (12.63%)

Aseem Thapliyal | June 3, 2020 | Updated 13:58 IST
InterGlobe Aviation share price rises over 12% despite Rs 871 crore loss in Q4
InterGlobe Aviation share is trading higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages

InterGlobe Aviation share price hit upper circuit of 10% in trade today despite the firm reporting a loss of Rs 871 crore for the quarter ended March 2020. Share price of InterGlobe Aviation has gained after 3 days of consecutive fall. The large cap stock touched an intraday high of Rs 1,064.95 (12.63%). The share is trading higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

Market cap of the firm rose to Rs 39,405 crore. Total 4.57 lakh shares changed hands amounting to turnover of Rs 46.80 crore. The stock hit a 52 week high of Rs 1,911 on September 23, 2019 and 52 week low of  Rs 765.05 on March 24, 2020.

The airline posted weak operating performance after air travel was hit in last week of March due to nationwide lockdown. In last quarter of 2018-19 fiscal, the firm posted net profit of Rs 596 crore. Revenue from operations rose 5.3 per cent year-on-year to Rs 8,299.1 crore.

"Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the March quarter," the airline said.

In last fiscal, the firm posted loss of Rs 234 crore compared to net profit of Rs 157 crore in 2018-19 fiscal. Revenue from operations rose 25.5 per cent to Rs 35,756 crore in FY20 led by a capacity increase of 18.8 per cent during the year, InterGlobe Aviation said. The government suspended all commercial passenger flights from March 25, the first day of coronavirus lockdown. IndiGo has also deferred guidance on future capacity growth amid uncertainty due to coronavirus crisis.

"With the prevailing uncertainty due to pandemic, we are not in a position to provide this guidance," it said.

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Brokerage Motilal Oswal is maintaining neutral stance on the stock. "We continue to believe that long-term demand and stability in the sector remain a key challenge; thus, we remain cautious on the stock. We value the company at 14 times (revised down from 16 times earlier) FY22 EPS of  Rs 77 to arrive at a target price of Rs 1,080 from Rs 1,300 earlier."

Edelweiss Research recommends hold on the stock. " While losses will surge in FY21, the stock is pricing-in a recovery during FY22. Indigo's scale, hitherto an advantage, will not benefit it in the event of consolidation, due to anti-trust concerns. We maintain 'HOLD'/SP with TP of Rs 961/share, " the brokerage said.

IndiGo reports net loss of Rs 871 crore in Q4 FY20, defers guidance on capacity growth amid COVID-19

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