Earlier this week, InterGlobe Aviation, the parent of IndiGo, saw its profit after tax more than doubling to Rs 2,998.1 crore in the December quarter from Rs 1,422.6 crore in the year-ago period.
Historical data shows that an airline gains market share or improves margins amid weak competition. This was true for Interglobe as well. Apart from expanded market share, its operating margin before depreciation and amortisation (EBITDA margin) improved to 31.2% in the June 2023 quarter from 20.9% in the March 2023 quarter despite buoyant crude oil prices at the time.
As of December 13, the IndiGo stock has been on an upward trajectory for the twelfth consecutive day, setting a new record for continuous gains, surpassing its previous record of 11 straight days of positive movements.
Best stocks to buy: Stock brokerages recently came out with research reports on select stocks namely Bank of Baroda (BOB), Godrej Properties, CEAT and InterGlobe Aviation (IndiGo). All the four shares have received Buy recommendations from individual broking firms. Find out all about the share price buy call, potential upside over the next 12 months and more in this Business Today Visual Story.