InterGlobe Aviation Ltd.’s shares were trading higher on Monday after Citi maintained its ‘buy’ rating and increased the target price on the stock by Rs 100. The brokerage raised the target price on IndiGo from Rs 5,100 to Rs 5,200, implying a 15% upside.

The firm has also opened a 90-day positive catalyst watch on IndiGo Airlines as it sees a pick-up in overall air traffic demand. Citi notes that the Maha Kumbh-driven demand has contributed positively to IndiGo’s strong market share. The brokerage expects significant improvement in Periodic Labour Forces in the fourth quarter of this financial year, a seasonally weak quarter.

Maha Kumbh could be a driver for overall demand, though it is clearly a one off, according to the brokerage.

According to reports, Prayagraj airport which is the main centre for Maha Kumbh, saw scheduled flights increasing from 16 earlier to more than 120 on Feb. 16, 2025. Citi notes that higher demand could manifest itself in better yields in the fourth quarter of 2025.

The brokerage notes that investors need to watch out for prevalent yield trends, growth guidance, and medium-term strategy on fleet and growth. The key risks noted by Citi for the stock are higher aviation turbine fuel prices and the weaker Indian Rupee against the dollar that could impact fourth-quarter results.

IndiGo Share Price

IndiGo stock rose as much as 1.32% during the day to Rs 4,570.8 apiece on the NSE. It was trading 0.84% higher at Rs 4,548.8 apiece, compared to a 0.97% decline in the benchmark Nifty 50 as of 11:33 a.m.

The stock is flat over the last 12 months. The relative strength index was at 51.43.

Seventeen out of the 22 analysts tracking the airline company have a ‘buy’ rating on the stock, three recommend a ‘hold’ and two suggest a ‘sell’, according to Bloomberg data. The 12-month analysts’ consensus target price on the stock is Rs 4,957.9, implying an upside of 8.8%.

. Read more on Markets by NDTV Profit.Citi notes that the Maha Kumbh-driven demand has contributed positively to IndiGo’s strong market share.  Read MoreMarkets, Business 

​NDTV Profit