IndiGo share price: Investors unfazed by Aditya Ghosh exit; look what Ramdeo Agrawal has to say
IndiGo share price had fallen over 6 per cent in Friday's trade even before Ghosh's exit announcement hit headlines. The stock ended at Rs 1399.70, down 0.5 per cent after gaining as much as Rs 1438.95, up 2 per cent on the BSE.
InterGlobe Aviation, which runs the low-cost carrier IndiGo, settled flat in Monday's trade after rising over 2 per cent intraday as investors remained unfazed by President Aditya Ghosh's exit. Notably, the stock had fallen over 6 per cent in Friday's trade even before Ghosh's exit announcement hit headlines. The stock ended at Rs 1399.70, down 0.5 per cent after gaining as much as Rs 1438.95, up 2 per cent on the BSE.
Zee Business spoke to Raamdeo Agrawal, Co-Founder & JMD, Motilal Oswal Financial Services, who is still bullish on IndiGo. "Aditya Ghosh was the face of IndiGo, not IndiGo per se. Although any loss is bad, but the show goes on! There is no point in selling IndiGo shares as underlying value of the company remains strong," said Agrawal.
With Aditya Ghosh stepping down as IndiGo's President, promoter Rahul Bhatia has taken charge as the interim CEO. The airline may consider naming Gregory Taylor as its president and chief executive officer in due course.
No-frills airline IndiGo is the country's largest domestic carrier with a market share of about 40 per cent.
The company is all set to report its March quarter earnings on Wednesday. For the quarter ended December 31, 2017, IndiGo reported net profit at Rs 762.03 crore as compared to Rs 551.56 crore profits logged in September quarter of FY18.
IndiGo share price is trading at a 12-month price to earnings (PE) ratio of 32.50 and earnings per share of Rs 43.16. By comparison, Jet Airways and SpiceJet are trading at PE ratio of 16.67 and 13.75, respectively. Their EPS stands at 38.60 and 9.26, respectively.
Meanwhile, the Sensex and Nifty settled near three-month high on Monday, in tandem with global markets, as technology shares gained and banking stocks rose after Kotak Mahindra Bank and HDFC reported robust March quarter earnings for FY18. The Sensex ended at 35,160, up 190.66 points, while the broader Nifty50 closed at 10,739, up 47.05 points.
The markets will remain closed on Tuesday to observe Maharashtra Day.
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