Triangular break out in Indigo and a potential for 25 cent gain!
Recent triangular break out in 
INDIGO on 6 months chart and the scrip trading at all time high suggests a price target of 5420 - 5480. It has recent spurt in volumes and a great ADX of more than 50.
Indigo has reported highest ever revenue of 712 Bn rupees, besides a healthy net profit margin of 11.9%. Besides this operationally too, aviation turbine fuel prices a.k.a jet fuel prices are at pre mid 2022 level.
Load factory a.k.a occupancy increased from 82% to 85% besides having a market share of ~62% and their capacity is expected to grow at 10-12% in 2025. It has ordered new 30 Airbus A350-900s in June to increase its international business to regional hubs. DIIs and FIIs have increased their share by more than 10% together in the last financial year alone i.e FY 23-24 while the promoters decreased their holding percentage. With an ROCE 0f over 25%, it is available at a PE of 23.3.
The only concern is debt to equity of 0.98, but that is to ensure expansion and purchase of aircrafts quite critical for their capacity expansion particularly in the international segment!
All the above point to a returns potential of 20-25% in the next two quarters or mostly by end of the calendar Year 2024!
INDIGO on 6 months chart and the scrip trading at all time high suggests a price target of 5420 - 5480. It has recent spurt in volumes and a great ADX of more than 50. Indigo has reported highest ever revenue of 712 Bn rupees, besides a healthy net profit margin of 11.9%. Besides this operationally too, aviation turbine fuel prices a.k.a jet fuel prices are at pre mid 2022 level.
Load factory a.k.a occupancy increased from 82% to 85% besides having a market share of ~62% and their capacity is expected to grow at 10-12% in 2025. It has ordered new 30 Airbus A350-900s in June to increase its international business to regional hubs. DIIs and FIIs have increased their share by more than 10% together in the last financial year alone i.e FY 23-24 while the promoters decreased their holding percentage. With an ROCE 0f over 25%, it is available at a PE of 23.3.
The only concern is debt to equity of 0.98, but that is to ensure expansion and purchase of aircrafts quite critical for their capacity expansion particularly in the international segment!
All the above point to a returns potential of 20-25% in the next two quarters or mostly by end of the calendar Year 2024!
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