IndiGo shares rise over 1% as Jefferies maintains 'buy', sees nearly 20% upside- Grow Mudra

IndiGo shares rise over 1% as Jefferies maintains 'buy', sees nearly 20% upside

16 Jun , 2025 By : Debdeep Gupta

Shares of InterGlobe Aviation, the operator of IndiGO Airlines, climbed over 1 percent to Rs 5,329 in early trade on June 16 after Jefferies reiterated its bullish view, citing strong growth prospects for IndiGo in the coming quarters and maintaining a ‘buy’ rating on the stock.

With a price target of Rs 6,300 per share, the international brokerage forecasts an upside potential of almost 20 percent from the last close of Rs 5,262 per share. The brokerage highlighted management’s reaffirmation of strong long-term growth drivers for India’s aviation sector. IndiGo continues to prioritise cost leadership and timely fleet expansion, especially amid ongoing consolidation in the airline space.

The international segment remains a key growth lever, supported by new fleet additions and route expansion. The company is also broadening its geographic reach and customer base through recent strategic initiatives.

In other news, following a string of stake sales by Rakesh Gangwal, another major block deal may be brewing at InterGlobe Aviation, the parent of IndiGo — this time involving co-promoter and InterGlobe Enterprises MD Rahul Bhatia.

CNBC-TV18 reported that InterGlobe Enterprises is planning to offload up to a 4 percent stake in the airline, potentially raising nearly $1 billion (around Rs 8,600 crore). If the deal goes through, it would mark Bhatia’s second such sale in just over a year. The firm currently holds a 35.7 percent stake in IndiGo, which would drop to 32 percent post-transaction.

The low-cost carrier reported a profit of Rs 3,067.5 crore for the quarter ended March 31, 2025, flying into its second straight quarter in green, as strong domestic travel demand continued across India. The biggest budget airline by market share had posted a net profit of Rs 1894.8 crore in the year-ago period. The company's revenue from operations grew 24 percent to Rs 22,151.9 crore from Rs 17,825.3 crore last fiscal.

At about 10:15 am, shares of the company were trading at Rs 5,285, higher by 0.5 percent from the last close on the NSE. IndiGo shares have risen nearly 16 percent since the beginning of the year.