Flying high! IndiGo shares cross ₹5,000 mark to hit record high on bright growth prospects. Should you buy?

Stock market today: Shares of Interglobe Aviation, the operator of IndiGo airlines, surged to a fresh record high on Wednesday, March 19 as the stock jumped 5% in intra-day deals today and crossed the ₹5,000 crore mark for the first time.

The rally in shares of India's biggest airline in terms of market share comes as the company highlighted a strong runway for growth in its investor presentation.

IndiGo said it plans to add one aircraft per week till 2030, with the company planning to take the total aircraft capacity to over 600-plus by FY30.

Meanwhile, the company added that it plans to expand its international capacity share to 40% from 25% currently. Furthermore, it looks to expand its fleet range with widebodies from FY25 and XLRs from FY26, allowing the company to take on more international long and mid-long haul routes.

IndiGo stock hits record high

Against this backdrop, IndiGo shares surged over 5% to hit a record high of ₹5,053.05 apiece. The blue-chip airline stock opened at ₹4,849.10 today, higher than its previous close of ₹4,807.95 and extended gains to a fresh peak.

The stock has remained resilient in the face of the ongoing selloff in the Indian stock market, with the stock surging 12% in just three months on the back of strengthening market share.

Meanwhile, the company added that it plans to expand its international capacity share to 40% from 25% currently. Furthermore, it looks to expand its fleet range with widebodies from FY25 and XLRs from FY26, allowing the company to take on more international long and mid-long haul routes.

IndiGo stock hits record high

Against this backdrop, IndiGo shares surged over 5% to hit a record high of ₹5,053.05 apiece. The blue-chip airline stock opened at ₹4,849.10 today, higher than its previous close of ₹4,807.95 and extended gains to a fresh peak.

The stock has remained resilient in the face of the ongoing selloff in the Indian stock market, with the stock surging 12% in just three months on the back of strengthening market share.

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The total domestic passenger traffic remained strong in January, with IndiGo witnessing a market share increase of 80 bps to a record 65.2%.

"IndiGo’s management, in its Q3FY25 earnings call, indicated possible low single-digit YoY decline in passenger yields in Q4. This is better than the guidance of a mid to high single-digit decline in yields mentioned by management for Q3FY25 during its Q2 earnings call. The guidance of a low single-digit YoY decline in yields, coupled with strong demand trends seen in Jan’25, augurs well for IndiGo in a seasonally weak Q4," brokerage ICICI Securities said in a recent note.

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