Shares of InterGlobe Aviation, the parent company of IndiGo, have shown signs of recovery, rising for the third consecutive trading session amid improving operational stability. The airline faced recent disruptions due to new flight duty time limitation (FDTL) norms affecting pilots, which led to widespread cancellations and operational challenges.
Despite these hurdles, market analysts remain optimistic about the long-term prospects of IndiGo. Several brokerage firms have maintained their positive ratings, with HSBC setting a target price of Rs 5,977 per share, indicating over 20 percent upside. They noted the airline's strong structural growth and cost advantages, though acknowledged short-term setbacks from cancellations and reputational damage.
Industry Outlook and Future Challenges
UBS and Jefferies also kept their 'Buy' ratings, citing the company's capacity for resilience despite operational disruptions. The recent implementation of stricter FDTL norms has impacted crew scheduling and capacity expansion plans, leading to cascading disruptions across the network. Nevertheless, industry experts believe IndiGo’s fundamentals remain solid, with regulatory adjustments expected to have only a temporary effects.
Overall, the airline's shares have recovered some ground, reflecting investor confidence in its long-term growth trajectory amidst regulatory and operational headwinds.
