Introduction
IndiGo, India’s leading airline, experienced a significant surge in its share price, jumping 2.76% to Rs 2499.95. This increase was driven by the company’s announcement of a massive aircraft order for 500 Airbus A320 family planes. The order, which is the largest-ever placed by an airline in a single instance worldwide, was signed during the Paris Air Show.
IndiGo’s Record-breaking Order
IndiGo’s latest aircraft order has surpassed Air India’s February order for 470 Airbus and Boeing planes. With this remarkable acquisition, IndiGo has solidified its position as the airline with the most extensive order book, comprising nearly 1,000 aircraft yet to be delivered. The purchase agreement secures a steady stream of deliveries between 2030 and 2035, with the exact mix of A320 and A321 aircraft to be determined later.
Financial Performance and Profits
In the previous quarter ended March 31, 2023, IndiGo reported a remarkable second consecutive quarterly profit of Rs 919 crore, demonstrating robust demand for air travel that outweighed the impact of rising fuel prices. This achievement follows an impressive 11-fold profit surge in the October-December quarter. In contrast, the year-ago period saw IndiGo posting a net loss of Rs 1,680 crore.
Market Analysis and Expert Opinions
Gaurav Bissa, VP at InCred Equities, analyzed IndiGo’s stock performance and identified significant patterns. The stock experienced a breakout on the weekly charts, reaching fresh lifetime high levels, but subsequently triggered a bearish harmonic alt shark pattern, which suggests a potential fall to 2150 levels. While the stock is currently trading above its major swing high levels, the risk-reward ratio may not be suitable for fresh buying. Existing shareholders are advised to consider booking partial profits based on the bearish harmonic pattern.
Share Price Performance
Over the past month, InterGlobe Aviation (IndiGo) shares have shown an impressive 8% increase, while the one-year performance reflects a significant surge of nearly 60%. On June 20, 2023, the stock touched a 52-week high of Rs 2,499.95, whereas its lowest point in the past year was observed on June 20, 2022, at Rs 1,513.30. With the current market price standing at Rs 2448.60 per share, IndiGo’s market capitalization reaches Rs 94,405 crore.
Conclusion
IndiGo recent mega aircraft order for 500 Airbus A320 family planes has propelled its share price, demonstrating the market’s confidence in the company’s growth prospects. With a robust financial performance and a record-breaking order book, IndiGo continues to solidify its position as a leading player in the airline industry. Read more article here.
