Shares of InterGlobe Aviation, the operator of India's largest airline IndiGo, climbed 2.7 percent on Tuesday, June 20, to record a new 52-week high after the company placed an order of 500 A320 family aircraft with French aerospace giant Airbus, marking the largest-ever order in aviation history.
The delivery of the new aircraft to IndiGo is planned between 2030 and 2035, with an estimated order value of around $50 billion. The order encompasses various aircraft models, including A320 neo, A321 neo, and A321 XLR.
During Tuesday’s trade, the stock opened at a price of Rs. 2,499 per share against the previous close of Rs. 2,432.70 per share. It was trading at ₹2,448.85, up by 0.68 percent, at 10:45 a.m. on the BSE.
The stock touched its 52-week low of Rs. 1,511.75 on June 20, 2022, indicating that at the current price, the stock is trading over 62 percent above that level.
The stock has increased by over 18 percent in the last six months. Furthermore, in the past one year, it has shown a growth of nearly 58 percent. Along similar lines, the stock has delivered almost 106 percent returns in the last five years to its shareholders.
India's largest budget airline, IndiGo, still has 480 planes' delivery pending from previous orders, which are expected to be received by the end of this decade. The airline has now placed another significant order for 500 additional planes, which will ensure a continuous flow of deliveries from 2030 to 2035.
The purchase agreement, described as "historic," was signed by an IndiGo team led by promoter and Managing Director Rahul Bhatia, along with Airbus executives headed by CEO Guillaume Faury, at the ongoing Paris Air Show 2023.
This order surpasses Air India's recent acquisition of 470 aircraft, including 70 twin-aisle planes, with a total value of $70 billion, in terms of the number of planes involved.
According to a statement from Pieter Elbers, Chief Executive of IndiGo, the recent order made on Monday will assist the company in accomplishing its goal of promoting economic growth, social cohesion, and mobility within India.
Morgan Stanley, a global research and broking firm, expects InterGlobe Aviation's pending aircraft orders to reach approximately 1,000 with the recent order, and predicts market share gains and margin improvement as key drivers for IndiGo, leading to an "overweight" rating and a price target of ₹3,126, Moneycontrol reported.
According to a MintGenie poll, 24 analysts on average have a ‘STRONG BUY’ call on the stock.