IndiGo shares surge today, gain about 20% in 2 days

Shares of InterGlobe Aviation, which operates IndiGo, today rallied nearly 10% to ₹1,128, extending their two-day gains to about 20%. Rival SpiceJet's shares also surged about 5% today. The domestic air travel resumed on May 25, following the directives issued by the Union Ministry of Civil Aviation.

Civil Aviation Minister Hardeep Singh Puri on Wednesday said that the Central government will consider restarting international flights as soon as the COVID-19 situation "normalises a bit" and poses no threat to people.

"We are continuously monitoring the situation and will consider restarting international flights as soon as the situation normalises a bit and poses no danger to our citizens. We will also have to consider that countries, where we intend to fly, are open to incoming foreign citizens," Puri said in a series of tweets.

Indigo on Tuesday reported a net loss of ₹870.8 crore in the three months ended March, due to higher expenses and suspension of flight operations due to coronavirus pandemic took a toll.

"IndiGo’s robust balance sheet and competitive cost structure (set to improve further) is best placed amongst Indian carriers to withstand the current disruption and also be in a position to capitalise on growth recovery," Centrum Broking said in a report while maintaining buy on the stock with price target of ₹1,244.

"The management refrained from giving any guidance given the uncertainties related to Covid-19 but emphasised on various cost reduction and liquidity enhancement measures," the brokerage said.

Asserting that the company has a healthy balance sheet, energised workforce, efficient fleet, strong cost position and firm market position in India and in neighbouring countries, IndiGo CEO Ronojoy Dutta said the firm is determined to emerge stronger from this crisis.

Source: https://www.livemint.com


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