 "IndiGo hits lowest level since listing")
Shares of InterGlobe Aviation, which operates IndiGo airline, have dipped nearly 6% to Rs 834 on the BSE, its lowest level since listing on November 10, 2015.
Post December quarter (Q3FY16) results, the stock tanked 30% from Rs 1,198 on January 21, 2016 as compared to 3.3% rise in S&P BSE Sesnex. It tanked 40% from Rs 1,396 touched on January 1 in intra-day trade. The company raised Rs 3,009 crore through initial public offering (IPO) at Rs 765 per share.
IndiGo declared financial results for the first time since its listing posted record earnings in Q3FY16, but the market was shaken by the news that the Airbus A320neo will be delayed, and the company provided no indication on how long it will be.
Analysts at Motilal Oswal Securities, in a recent report, cut earnings estimates for FY16 by 25% to factor in actual 9MFY16 results and for FY17/FY18 by around 18% to factor in A320neo delays, higher employee costs and rentals. However, they believe that any positive news on aircraft deliveries will be a positive trigger for the stock.
Indigo has compensated A320neo delays by shortterm leases, but nevertheless will impact its fleet guidance given during IPO.
“As Airbus has delivered its first A320neo aircraft to Lufthansa on Jan 20, 2016 and Indigo being one of the launch customer, we do not expect significant delay and only marginally lower our fleet assumptions”, analysts said in a report dated January 22.
At 01:51 PM, the stock was down 5% at Rs 839 on the BSE. A combined 1.91 million shares changed hands on the counter on the BSE and NSE.
Post December quarter (Q3FY16) results, the stock tanked 30% from Rs 1,198 on January 21, 2016 as compared to 3.3% rise in S&P BSE Sesnex. It tanked 40% from Rs 1,396 touched on January 1 in intra-day trade. The company raised Rs 3,009 crore through initial public offering (IPO) at Rs 765 per share.
IndiGo declared financial results for the first time since its listing posted record earnings in Q3FY16, but the market was shaken by the news that the Airbus A320neo will be delayed, and the company provided no indication on how long it will be.
Analysts at Motilal Oswal Securities, in a recent report, cut earnings estimates for FY16 by 25% to factor in actual 9MFY16 results and for FY17/FY18 by around 18% to factor in A320neo delays, higher employee costs and rentals. However, they believe that any positive news on aircraft deliveries will be a positive trigger for the stock.
Indigo has compensated A320neo delays by shortterm leases, but nevertheless will impact its fleet guidance given during IPO.
“As Airbus has delivered its first A320neo aircraft to Lufthansa on Jan 20, 2016 and Indigo being one of the launch customer, we do not expect significant delay and only marginally lower our fleet assumptions”, analysts said in a report dated January 22.
At 01:51 PM, the stock was down 5% at Rs 839 on the BSE. A combined 1.91 million shares changed hands on the counter on the BSE and NSE.
