IndiGo share price hits new high, gains 10% in 4 sessions; should you buy, sell, or hold?

Shares of InterGlobe Aviation-owned IndiGo have soared 7.9 per cent in just two days, touching a new all-time high of ₹5,187 on the BSE. The surge came after the airline revealed its ambitious FY30 expansion roadmap, which includes aggressive fleet expansion and international growth. Speculations about a potential inclusion in the Nifty 50 index also boosted the stock.

IndiGo's Bold Expansion Plans

IndiGo, India’s largest airline by market share, presented an ambitious growth plan during its recent investor presentation. The airline announced that it intends to add one aircraft per week until 2030, aiming to expand its fleet to over 600 aircraft.

Additionally, IndiGo plans to increase its international capacity share from the current 25 per cent to 40 per cent. The company also intends to introduce wide-body aircraft from FY25 to tap into the lucrative long-haul routes, strengthening its presence in global markets.

In terms of passenger traffic, IndiGo anticipates carrying 118 million passengers in FY25, with early double-digit growth projected for FY26. The airline also plans to add 14 new destinations in FY26, enhancing both its domestic and international network.

Potential Nifty 50 Inclusion Adds to Optimism

Another factor boosting investor sentiment is the likelihood of IndiGo’s inclusion in the Nifty 50 index during the September 2025 review, according to a study by Nuvama Alternative and Quantitative Research.

"We reiterate that there is a very high chance of IndiGo getting included in the Nifty 50 during the September 2025 review," Nuvama wrote in its note. The firm believes IndiGo could potentially replace Hero MotoCorp in the index.

Nuvama also mentioned that the promoter lock-in period has ended, and any potential stake sale could present a buying opportunity for investors.

Brokerages Remain Bullish Despite Valuation Concerns

Several leading brokerages have weighed in on IndiGo's growth potential, with mixed views due to its premium valuations.

Nuvama maintained a ‘Hold’ rating, citing stretched valuations despite strong growth potential. The brokerage revised its FY25E/26E/27E EPS estimates upwards by 13 per cent/10 percent/8 per cent, factoring in strong Q4FY25 and FY26 guidance. It raised the target price by 7 per cent to ₹4,768, indicating a downside risk from current levels.

BofA Securities remained bullish, reiterating a ‘Buy’ rating and hiking its target price to ₹5,600 from ₹4,750, driven by stronger pricing power and fourth-quarter revenue surprises.

Goldman Sachs also maintained a ‘Buy’ rating, setting a target price of ₹5,050, citing IndiGo’s dominant domestic position and international expansion as key growth drivers.

Jefferies raised its target price to ₹5,700 from ₹5,300, maintaining a ‘Buy’ stance. The brokerage expects robust Q4FY25 results and steady capacity growth in FY26, backed by fleet expansion and strong financials. It values IndiGo at 10x FY27E EV/EBITDA, implying a 25x FY27 PE. Jefferies highlighted the airline’s ₹289 billion free cash position as of Q3FY25, offering flexibility for growth investments.

Stock Price Performance

IndiGo's shares jumped 4.2 percent in intra-day trade, hitting a fresh all-time high of ₹5,187 on Thursday. The stock extended its rally to the fourth consecutive session, gaining over 10 per cent during this period.

In March alone, IndiGo’s stock has advanced over 13 per cent, following a 3.5 per cent rise in February. However, the stock declined by 5 per cent in January.

The airline’s stock is now trading 63 per cent higher than its 52-week low of ₹3,184.10, recorded in March 2024, and has climbed 54 per cent over the past year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.