IndiGo shares fly high after airline orders 500 aircraft; here's what analysts say

Shares of InterGlobe aviation touched a high of ₹2,499.95. This after the airline announced a record 500-aircraft order for an estimated $50 billion with European aircraft manufacturer Airbus SE at the Paris Air Show on Monday.

According to a report by CNBC-TV18's fundamental analysts, the stock of IndiGo has the potential to gain up to 28 percent, while a technical analysis suggests a level of Rs 2550.

ICICI Securities said IndiGo’s consistent approach to aircraft management has given it rich dividend by continuously being able to sustain cycles in terms of lowest cost structure and cash accretion. It maintained a 'Buy' rating on the stock with an unchanged target price of Rs 3,000, based on 25 times FY25E EPS of Rs 120.

Meanwhile, Citigroup has raised its target price on the stock to Rs 2900 from Rs 2400 earlier.

Speaking on IndiGo Airlines' mega deal, Civil Aviation Minister JyotiradityaScindia said family aircraft "India has set another landmark with this largest-ever recorded order by a carrier with any aircraft manufacturer in the world...''

He further added that every dollar invested in civil aviation yields $3.1 in terms of new growth, as well as the employment multiplier. Every direct job in civil aviation results in 6.1 indirect jobs in the sector. And therefore, there are tremendous dividends that accrue from the ever-expanding civil aviation sector,".

With this additional firm order of 500 aircraft for 2030-2035, IndiGo’s order-book has almost 1,000 aircraft yet to be delivered well into the next decade. This IndiGo order-book comprises a mix of A320NEO, A321NEO and A321XLR aircraft.