Motilal Oswal has given Neutral recommendation for Indigo with a target price of Rs. 1575 in its research report issued on Jun 08, 2021

Motilal Oswal’s research report on Indigo

INDIGO reported an in line ASK (19.2b), PLF (70%), RPK (13.5b), and yield (INR3.7), while miss to our estimates was led by higher fuel cost. Air passenger demand touched a record high in Feb’21 after the lifting of COVID-related restrictions, although the second wave impacted demand in May’21. Cash burn rose to INR190m in 4Q (from INR150m in 3QFY21). Cash burn is expected to be higher in 1QFY22 as daily passenger demand falls to ~80,000 passengers from the highs of ~300,000 at the end of Feb’21. INDIGO expects Feb’21 demand to return by the end of 3QFY22.


The company had a total cash of INR185.7b (free cash fell 21% YoY at INR71b, restricted cash flat YoY at INR115b) at the end of FY21.