InterGlobe Aviation declines 4% as Citi downgrades stock to 'sell'

NEW DELHI: Shares of InterGlobe Aviation fell 4 per cent in Thursday's trade after foreign brokerage Citi downgraded the stock to 'sell' from 'neutral' with a target of Rs 1,400.

The brokerage said that the market share of the aviation company might have peaked. It believed that there are many imponderables regarding sustainability of the September quarter drivers. Following the development, the stock fell 2.73 per cent to hit a low of Rs 1,531.60 on BSE. Citi's target suggests up to 9 per cent potential downside from the prevailing levels.

The broking firm continues to value the business at 2.2 times FY22 EV to sales. "Flying at too high an altitude," Citi said on the stock.

The parent company of India's largest airline IndiGo has reported a net loss of Rs 1,194.80 crore for the September quarter compared with a loss of Rs 1,062 a year ago.

The airline's total income declined 64.50 per cent YoY to Rs 3,029.2 crore, but Ebitda increased 59.30 per cent to Rs 408.50 crore.

As of September 30, IndiGo had a total cash balance of Rs 17,931.8 crore, comprising Rs 6,973.4 crore of free cash and Rs 10,958.4 crore of restricted cash. The capitalised operating lease liability was Rs 22,931.9 crore and the total debt was at Rs 25,419.4 crore.