Posted on March 20, 2025, by Niftynews
IndiGo share price has hit an all-time high of ₹5,187, following a remarkable surge of 10% in just four sessions. This significant jump in IndiGo stock price comes after the airline’s announcement of an ambitious FY30 expansion roadmap. Investors are also buoyed by the possibility of IndiGo’s inclusion in the Nifty 50. With mixed views from brokerages on its valuations, many are wondering: Should you buy, sell, or hold IndiGo share price now? Let’s dive into the details and explore expert recommendations.
IndiGo Share Price Boosted by Bold Expansion Plans
The recent surge in IndiGo share price was triggered by the airline’s growth plans for FY30. IndiGo, India’s largest airline by market share, announced plans to expand its fleet by adding one aircraft per week until 2030, reaching a total of over 600 aircraft.
Furthermore, IndiGo is set to increase its international capacity share from 25% to 40%, introducing wide-body aircraft from FY25 onwards to target long-haul routes. This aggressive expansion plan positions IndiGo share price for long-term growth and stronger international market penetration.
IndiGo also plans to carry 118 million passengers in FY25, with expectations of double-digit growth by FY26. Additionally, the airline aims to add 14 new destinations in FY26, which will bolster both domestic and international networks.
IndiGo Share Price Rising Amid Nifty 50 Inclusion Speculation
Investor sentiment is also being fueled by speculations about IndiGo’s inclusion in the Nifty 50 index. Research firm Nuvama Alternative and Quantitative Research has highlighted a high chance that IndiGo will be included in the Nifty 50 during the September 2025 review, potentially replacing Hero MotoCorp. The anticipated inclusion could significantly raise IndiGo share price visibility, attracting more institutional investors.
Moreover, with the end of the promoter lock-in period, market observers are speculating that IndiGo could undergo a stake sale, which could create another potential buying opportunity for investors.
Brokerages Remain Optimistic on IndiGo Share Price Despite Valuation Concerns
Brokerages have mixed opinions on IndiGo’s share price due to its premium valuations, despite the airline’s robust growth potential.
- Nuvama: The brokerage maintains a ‘Hold’ rating, citing the airline’s stretched valuations. Despite this, they revised their FY25/FY26/FY27 EPS estimates upwards and raised their target price to ₹4,768.
- BofA Securities: Reiterating a ‘Buy’ rating, BofA raised its target price to ₹5,600, driven by IndiGo’s strong pricing power and higher-than-expected Q4 revenue surprises.
- Goldman Sachs: Maintaining a ‘Buy’ rating, Goldman Sachs set a target price of ₹5,050, highlighting IndiGo’s dominant position in the domestic market and its growing international footprint as key drivers.
- Jefferies: Jefferies also remains bullish, increasing its target price to ₹5,700 from ₹5,300. The brokerage cited the airline’s ₹289 billion free cash as a key factor supporting its growth prospects.
IndiGo Share Price Performance: A Stellar Rally
IndiGo share price has been on a remarkable rally. On March 20, 2025, it surged by 4.2% in intra-day trade, hitting the record high of ₹5,187. Over the last four sessions, the stock has gained over 10% and 13% in March alone, after a 3.5% rise in February.
IndiGo’s stock is now 63% higher than its 52-week low of ₹3,184.10 (March 2024), and it has climbed 54% over the past year, making it one of the top performers in India’s aviation sector.
Should You Buy, Sell, or Hold IndiGo Share Price?
As IndiGo share price continues its upward trajectory, investors are left wondering whether they should buy, sell, or hold the stock.
- Buy: If you believe in IndiGo’s long-term growth potential, particularly its fleet expansion and international market share gains, now might be a good time to buy.
- Sell: If you’re concerned about premium valuations and potential short-term volatility, it might be prudent to lock in gains and sell.
- Hold: For those already holding IndiGo shares, it may be wise to hold and track further developments, especially in light of the Nifty 50 inclusion and international expansion.
