₹4,547 - That's What Analysts Think InterGlobe Aviation Limited (NSE:INDIGO) Is Worth After These Results

InterGlobe Aviation Limited (NSE:INDIGO) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to ₹4,257 in the week after its latest annual results. InterGlobe Aviation reported ₹689b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹212 beat expectations, being 4.4% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for InterGlobe Aviation

After the latest results, the eleven analysts covering InterGlobe Aviation are now predicting revenues of ₹767.1b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 6.6% to ₹198 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹752.3b and earnings per share (EPS) of ₹190 in 2025. So the consensus seems to have become somewhat more optimistic on InterGlobe Aviation's earnings potential following these results.

The consensus price target rose 13% to ₹4,547, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values InterGlobe Aviation at ₹5,500 per share, while the most bearish prices it at ₹3,600. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await InterGlobe Aviation shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that InterGlobe Aviation's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.9% annually. So it's pretty clear that, while InterGlobe Aviation's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards InterGlobe Aviation following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for InterGlobe Aviation going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with InterGlobe Aviation .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.