In the pre-opening, however, the stock price had tanked 10 percent.
Brokerages have mixed views after InterGlobe Aviation reported its results for December quarter, with all brokerages maintaining their current ratings and target price on the stock.
Shares of the company recovered after a weak opening, gaining as much as 4.9 percent after falling almost 3 percent in early trade.
InterGlobe Aviation's Q3 net profit plunged 75 percent YoY to Rs 191 crore, hurt by rising crude oil prices and a weaker rupee.
The Indigo operator had reported a loss in the previous quarter for the first time since its listing in 2015.
The company reported revenue at Rs 7,961.2 crore for the quarter, up 28.1 percent from the same quarter last year.
InterGlobe Aviation's total expenses for the December quarter rose 50.1 percent YoY to Rs 8,038.5 crore.
The airline operator said it expects available seat kilometres (ASK) to rise 34 percent YoY in Q4.
Here’s what brokerages had to say about InterGlobe Aviation’s results for the third quarter of FY19.
Brokerage: JPMorgan | Rating: Underweight | Target: Rs 940
JPMOrgan said that though the airline’s yield had improved, load factor offset the revenue per available seat kilometre (RASK).
The management’s commentary on outlook was constructive, JPMorgan said in a research note.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,137
Morgan Stanley says InterGlobe Aviation’s profits missed estimates due to lower volumes.
The inflection in the yield trend is a huge positive, and the stock offers attractive risk/reward at current levels.
Brokerage: Credit Suisse | Rating: Neutral | Target: Rs 1,075
Credit Suisse revised the company’s earnings estimates for FY20 and FY21 by 3 percent and 9 percent respectively.
Brokerage: Motilal Oswal | Rating: Neutral | Target: Rs 1,074
Motilal Oswal raised its FY19 EPS estimate for InterGlobe Aviation, since the third quarter profit was better than expected.
The company become profitable due to higher yield.
Brokerage: SBICAP | Rating: Buy | Target: Rs 1,234
Tier 2 and Tier 3 cities, along with international markets, are driving the company’s growth, according to SBICAP.
There is no respite from cost pressure, as yield improvement comes at the cost of passenger load factor (PLF).
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
