InterGlobe Aviation shares fall most in 22 months as profit plunges

 Shares of InterGlobe Aviation Ltd sank as much as 14.7% in their biggest daily percentage loss since July 2016. The stock hits lowest in nearly 3 months.

The parent company of India’s top carrier IndiGo on Wednesday declared that its Q4 profit slumped 73% to Rs 118 crore, hurt by higher expenses and surging fuel costs.

At 10.36 am, shares of InterGlobe Aviation Ltd were trading 12.80% lower at Rs 1,170.90 on the NSE.

InterGlobe also said passenger yields had fallen over 5%. Brokerage firm Morgan Stanley cut the share’s price target to Rs 1,205 from Rs 1,213 with ‘equal-weight’ rating, building in weaker yields and including spot forex and fuel prices. Edelweiss Investment Research analysts believe operational challenges with higher fuel prices, rupee depreciation and delay in delivery of aircraft will continue.

Thirteen of 18 brokerages rate stock “buy” or higher, four “hold” and one “sell” or lower; median PT is Rs 1,473.

InterGlobe aviation shares have gained about 16% in first four months of this year.