Credit Suisse has maintained outperform rating on Inter-Globe Aviation with a target price of Rs 1,850.
The stock ended down 6.41 per cent at Rs 999.75 on Wednesday while the BSE Sensex closed 1203.18 points down (-4.08 per cent) at 28,265.31.
InterGlobe Aviation, incorporated in 2004, has a market cap of Rs 38470.01 crore. Investment RationaleIndiGo could have large losses between the fourth quarter of FY20 and the first half of FY21, eroding around 75 per cent of net worth, said Credit Suisse.
The brokerage has retained outperform rating on strong long-term growth across several parameters.
FinancialsInterGlobe Aviation's key products/revenue segments include Income (Airlines) which contributed Rs 27769.81 crore to sales value (97.44 per cent of total sales); Traded Goods which contributed Rs 395.41 crore to sales value (1.38 per cent of total sales) and Other Operating Revenue which contributed Rs 331.55 crore to sales value (1.16 per cent of total sales)for the year ending March 31, 2019.
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 9931.69 crore, up 22.53 per cent from last quarter sales of Rs 8105.19 crore and up 25.46 per cent from last year same quarter sales of Rs 7916.22 crore.
The company reported net profit after tax of Rs 495.97 crore in the latest quarter.