IndiGo share price at record high, Kotak sees a 30% upside in stock: What next? Should you buy or not?

IndiGo share price: Brokerage firm Kotak Securities remained positive about the stock maintaining a buy call.

IndiGo share price: The share price of IndiGo rose almost 3 per cent as it hit its fresh record high of ₹3,339 on BSE today (March 19). The stock opened at ₹3256.45 against its previous close of ₹3248.10 on March 18. The share price rose about 2.8 per cent to hit its fresh all-time high level and traded 1.25 per cent higher at ₹3,288.65. In the past one year, the stock has gained about 72 per cent, outperforming the equity benchmark Sensex which gained 25 per cent in the same period.

IndiGo share price: In the past one year, the stock has gained about 72 per cent, outperforming the equity benchmark Sensex.

What Kotak said on IndiGo?

Brokerage firm Kotak Securities remained positive about the stock maintaining a buy call on it as it raised the target price to ₹4,200 indicating a 30% upside potential.

"We estimate the country to grow aircraft capacities by 11 per cent over FY24-30 and seat capacities at slightly higher CAGR. At the same, we build in some part of the risk of the Boeing Exposure (more than 25 per cent of a backlog of Indian Carriers) getting deferred beyond its timeline," Kotak said, adding, “IndiGo has shared a 2030 capacity guidance suggesting 11-12 per cent CAGR in the fleet count and a slightly higher CAGR for ASK (available seat kilometres) and is well-placed to deploy this capacity across domestic and international routes. Pricing, the one variable for IndiGo, may not see a meaningful impact from competition.”

Moreover, opening of new airports may lead to healthy growth in demand over a base not yet fully served by Indian carriers, Kotak asserted.