IndiGo stock: Analyst urges caution after major drop
IndiGo's parent company, InterGlobe Aviation, just saw its stock tumble over 16% in a month after December's massive flight cancelations left thousands stranded and regulators watching closely.
Even with the price dip, market strategist Orton is telling investors to hold off—"I wouldn't be a dip buyer right now until we know how regulation might shake out."
Why does this matter?
Those cancelations cost IndiGo about ₹500 crore in payouts and wiped $5 billion off its value, dropping its market cap to ₹1.9 lakh crore.
Earnings forecasts have also taken a hit, slashing expected profits for next year by 30%.
What's behind the risk?
Regulators are now investigating whether IndiGo's huge 60%+ market share breaks competition rules.
While the airline did bounce back quickly—running over 2,000 flights on December 12 with fewer cancellations—it still faces big questions about future stability.