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Interglobe Aviation Ltd

NSE: INDIGO BSE: 539448

4909.40

(-0.46)%

Sat, 07 Feb 2026, 09:16 am

Analysis

dividend

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Pros

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    Cons

    • InterGlobe Aviation has only been paying a dividend for 4 years, and since then dividends per share have fallen.
    • The company is paying a dividend however it is incurring a loss.
    • No need to calculate the sustainability of InterGlobe Aviation's dividends in 3 years as they are not expected to pay a notable one for India.
    • InterGlobe Aviation has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
    • InterGlobe Aviation's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • InterGlobe Aviation's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • InterGlobe Aviation's earnings are expected to grow significantly at over 20% yearly.
    • InterGlobe Aviation's earnings growth is expected to exceed the India market average.
    • InterGlobe Aviation's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • InterGlobe Aviation is expected to become profitable in 3 years time.
    • InterGlobe Aviation is expected to become profitable in 2 years.
    • InterGlobe Aviation is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
    • Performance (ROE) is expected to be above the current Asia Airlines industry average.
    • An improvement in InterGlobe Aviation's performance (ROE) is expected over the next 3 years.
    • InterGlobe Aviation's revenue growth is expected to exceed the India market average.
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    Cons

    • Cash flow for InterGlobe Aviation is expected to increase but not above the 50% threshold in 2 years time.
    • InterGlobe Aviation is expected to be loss making next year.
    • InterGlobe Aviation's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • InterGlobe Aviation's revenue is expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • InterGlobe Aviation is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • InterGlobe Aviation has been profitable on average in the past, therefore cash runway is not a concern.
    • InterGlobe Aviation has been profitable on average in the past, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (2011.6%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 64.8x debt.
    • InterGlobe Aviation's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (70.2% vs 5.9% today).
    • InterGlobe Aviation's level of debt (5.9%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • InterGlobe Aviation is making a loss, therefore interest payments are not well covered by earnings.
    • High level of physical assets or inventory.

    management

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    Pros

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      Cons

      • The average tenure for the InterGlobe Aviation board of directors is less than 3 years, this suggests a new board.
      • The average tenure for the InterGlobe Aviation management team is less than 2 years, this suggests a new team.

      past

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      Pros

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        Cons

        • Unable to compare InterGlobe Aviation's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • InterGlobe Aviation does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
        • InterGlobe Aviation used its assets less efficiently than the Asia Airlines industry average last year based on Return on Assets.
        • It is difficult to establish if InterGlobe Aviation improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if InterGlobe Aviation has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
        • Unable to compare InterGlobe Aviation's 1-year growth to the Asia Airlines industry average as it is not currently profitable.

        value

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        Pros

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          Cons

          • InterGlobe Aviation's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
          • InterGlobe Aviation's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
          • InterGlobe Aviation is overvalued based on assets compared to the Asia Airlines industry average.
          • InterGlobe Aviation is loss making, we can't compare its value to the Asia Airlines industry average.
          • InterGlobe Aviation is loss making, we can't compare the value of its earnings to the India market.
          • 539448 underperformed the Airlines industry which returned -31.8% over the past year.
          • 539448 underperformed the Market in India which returned -14.5% over the past year.
          • BSE:539448 is up 2.3% underperforming the Airlines industry which returned 5.5% over the past month.
          • BSE:539448 is up 2.3% underperforming the market in India which returned 8% over the past month.

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