Here are all the Brokerage Reviews & Recommendations of
Interglobe Aviation - Indigo Airlines IPOAmar Ambani of IIFL Research Wrote,
IAL’s strong promoter background, significant growth potential and robust key metrics instills confidence in the business model. However issue looks richly priced and near term upside if any appears limited and those looking purely for listing gains may not be excited. However, investors with long term horizon must monitor stock post listing for attractive entry points.
ICICI Direct wrote,
The proposed issue price band of | 700-765 implies an EV/EBITDA of 13.6-14.8x and EV/sales of 1.83x-2.0x, which, we believe, factors in all major positives of lower than industry cost structure, low crude prices and sustained mid-teen ASK growth. The valuation also commands a premium over select global peers that are trading at average EV/sales of 1.5x and EV/EBITDA of 9.3x.
Milan Desai of Angel Broking Wrote,
We believe that the valuation of Interglobe is justified, considering the opportunity present in the vastly underpenetrated Indian air travel market. Interglobe is better placed than its peers to capture higher market share on the back of its proven Management track record, continuous fleet addition and with its sustainable profitable business model. Hence we recommend a “Subscribe” to the issue at the higher end of the price band.
Parita Ashar of Ambit Capital Wrote
The lower end of the proposed issue price implies a trailing FY15 EV/EBITDAR of 10.2x, at the higher end of the peer sector range; we believe this builds in profits from aircraft trading, lower-than-industry aircraft maintenance costs in perpetuity, benefits of low crude prices and sustained mid-teen ASK growth. In an industry where rarely RoICs have been generated, Indigo no doubt is a very strong franchise in a big in a high potential market franchise but pricing seems expensive to buy from a large shareholder at a time when everything's good.
Nilesh Gandhi & Rajiv Bharti of Destimoney Securities wrote,
The company has reported profit in its last seven fiscals in contrast to its competitors which struggled to continue their operations profitably owing to lack of financial and managerial discipline. We believe Interglobe Aviation Ltd is one of the better stories in the Indian aviation space at a more favorable valuation than currently being offered. We suggest investors to AVOID the IPO.
Way2Wealth Analyst Nisha Harcherkar has the following views,
At the offer price bands, the issue is available at P/E of 19.5x – 21.3x its FY15 EPS of ~`36. The financials are not comparable to its listed peers as it is the only profit making Company compared to losses in Jet Airways and SpiceJet. However, most of the positives like recent fleet addition, lower crude oil prices, expected strong growth in under penetrated market and profitable business seem to be already priced in the offer price leaving very little for investors. The Company has a negative net worth of `139.39 crore as at June 30, 2015 as it offered dividend to promoters during FY15 which was 3x higher than FY14. Hence we recommend investors to AVOID this issue.
