Motilal Oswal has given Neutral recommendation for Indigo with a target price of Rs. 1530 in its research report issued on Apr 12, 2021

Motilal Oswal’s research report on Indigo

The recent spike in COVID-19 cases in India weighs heavily on the Aviation sector, with flyers confidence tanking, leading to further delays in the recovery of demand. Daily passenger demand dropped by ~13% to ~246,600 passengers in the last week of Mar’21 (v/s the last week of Feb’21 – when the peak was recorded), resulting in no MoM improvement in traffic (still down ~37% to pre-COVID levels). In Apr’21, demand further fell by ~5% from the last week’s average of Mar’21 to ~233,000 passengers per day. As per our airfare tracker, yields in Mar’21 increased by 2-5% MoM, but down 13-14% QoQ in 4QFY21. This is despite the upward revisions in the floor of airfare bands in Feb’21 by 10% and again in Mar’21 by 5%.