Interglobe Aviat (INDIGO)

FairStock Score: 42/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is asking ₹5,310 for a business whose Graham Number is ₹646 and DCF intrinsic value is ₹760. I see little margin of safety — actually negative 646.94%. The airline has scale, 5-year revenue CAGR 17.71% and latest sales ₹23,472 Cr, but commoditized flying is not a moat like a brand or toll bridge. ROE 37.19% looks attractive, but ROCE 17.34% and debt/equity 8.66 tell me returns depend on leverage and leases. The balance sheet gives pause: current ratio 0.90, Altman Z 2.07, and latest quarterly net profit ₹613 Cr is only ~2.6% of sales. Profit growth -117.65% shows earnings volatility. Free cash flow ₹11,393 Cr and Piotroski 6/9 are positives, but not enough to justify P/E 41.17, P/B 29.45, EV/EBITDA 444.21. This is a cyclical airline: great when capacity discipline and demand align, terrible when costs or competition bite. At ₹5,310, price already assumes years of flawless execution. I would watch promoter holding 41.57%, but that doesn't protect valuation. Dividend yield 0.24% gives almost no cash return. The stock may be a good business at a bad price, or a cyclical at peak optimism. As Graham said, price is what you pay, value is what you get. Here the figures suggest value is far below price. I'd wait for a price closer to intrinsic value or evidence of durable margin improvement.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer