Shares of InterGlobe Aviation rose 1% in early trade but erased gains to trade flat, ahead of the firm's March quarter earnings announcement today. With the aviation industry among the worst-affected sectors globally owing to the coronavirus pandemic, investors will focus on the earnings of IndiGo airline, India's largest airline, by market share.
The stock price of InterGlobe Aviation opened at Rs 950 and later touched an intraday high of Rs 963.70 on BSE, gaining 1.06% against last closing value of Rs 953.50.
IndiGo stock has gained after 2 days of consecutive fall. The airline stock has risen 1.3% in one week but has fallen 4.17% in one month and 28.5% year to date.
Share price of InterGlobe Aviation trades higher than 20-day but lower than 5, 50, 100 and 200-day moving averages. Market capitalisation of the firm stood at Rs 36,517 crore.
According to IIFl Securities, stock's support is placed at Rs 940 and its resistance at 975.
Many brokerages have revised estimates for the airline company, owing to the shutdown due to the COVID 19 crisis, resulting in lower demand and fares. With the operations resuming again post-May 25, as per the new standard operating procedures (SOPs) issued by Airport Authority of India, risks of spread of disease also looms on the business.
According to a report by Marcellus, Interglobe Aviation (Indigo Airlines) has grown its market share over the last decade from approximately 15% in FY10 to 50% in FY20 with its 'revenue per passenger' growing at only 1% CAGR over FY10-20.
Motilal Oswal has kept the stock rating at Neutral, with a target price at Rs 1,300 and upside of 33%. The brokerage has reduced its EPS estimates for FY20 by 5.2% and 25% for FY21.