IndiGo Crisis: Indigo, the airline company which controls about 60 percent of the country’s domestic flights, is currently going through a serious crisis. The situation became so bad that the government had to intervene and DGCA issued a notice to the company. The same issue was also raised by the Congress party in the Lok Sabha on Monday. Due to continuous flight cancellations, delays and passenger complaints for the past one week, there was a negative sentiment in the market about IndiGo, which had a direct impact on its shares. There was a huge fall of up to 7 percent in Indigo shares during intra-day trading.

Big fall in Indigo shares

However, the airline says that it is trying to increase the number of flights and rapidly improve its on-time performance. Meanwhile, global brokerage firm Jefferies has described IndiGo’s current crisis as a “buying opportunity” for investors. Jefferies on Indigo’s shares buy While giving rating, target price has been fixed at Rs 7,025, which shows a possible gain of about 31 percent from the current price. According to the firm, regulatory changes made by the government and some operational shortcomings are responsible for IndiGo’s situation.

The airline company is trying for speedy recovery. IndiGo operated 1,650 flights on Sunday, whereas the number was 1,500 a day earlier. On-time performance also increased from 30 percent to 75 percent. Earlier, on December 5, the company had to cancel more than 1,000 flights in a single day. To handle the situation, Indigo took action over the weekend. Crisis Management Group (CMG) Formed, in which all key board members and senior leadership were included.

Airlines are recovering fast

CMG reviewed the operational situation through frequent meetings, while IndiGo CEO Peter Elbers, in a message to passengers, acknowledged that December 5 was an extremely challenging day for the company, when about 60 percent of daily flights had to be cancelled.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

Read this also: Rupee is in bad shape against dollar, crossed 90 mark, know what is the reason for the collapse

GST 2.0: Taking a big step towards speeding up the country’s economy, the central government has made a big change in GST. Earlier, four slabs were kept in GST 1.0, but now it has been reduced to only two slabs. This new structure will be applicable from 22 September 2025. However, the state governments have expressed concern about their revenue loss about this change.

According to the government estimate, there may be a loss of about Rs 48,000 crore annually based on the consumption pattern of 2023-24. Revenue Secretary Arvind Srivastava said in a statement to news agency IANS that the central government may have to bear such a burden.

What do brokerage firms say on loss?

Brokerage firms believe that the actual loss will not be so large, as GST improvement can increase demand. According to Jafaries estimates, in FY 2026, this deficit can be reduced between 22,000 and 24,000 crore rupees. The firm argues that tax cuts may reduce inflation and in such a situation, the Reserve Bank can cut interest rates from 25 to 50 basis points.

Experts of Bransstein say that if the government does not cut capital expenditure, then this deficit can increase to about 20 basis points of the Union Budget. But if capital expenses are cut by 5 percent, then this effect will be reduced to only 5 basis points.

Impact on market

According to UTI AMC, the impact of this change on the bond market and stock market will be limited. At the same time, the ICRA welcomed the government’s move and said that this improvement will prove to be positive for industries struggling with the pressure of American high tariffs and will strengthen the market notion.

Also read: What do the big business personalities of the country think on GST 2.0? Opinion from Anand Mahindra to Harsh Goenka

Such opportunities do not come in the stock market everyday. International brokerage firms Jefferies have given BUY ratings on three legendary companies, Ambuja Cement, Naveen Flornin, and Voltas. One of these stocks shows up to 29 percent upside. Let us know why these companies are considering Jefferies ‘top pics’ and what investors indicate it.

Ambuja Cement, Target Rs 700, Expected Powerful Growth

Jefferies recently met the management of Ambuja Cement, after which he has retained the BUY rating. The company aims to reach a cement capacity of 140 million tonnes per year (MTPA) by FY28, which is currently 100 MTPA.

The company also shared strategies to control the cost and increase operational efficiency. A recovery of 7-8 percent in industry demand by FY26 is expected. Ambuja said that in the last few months, cement prices have improved and the market has adopted it well. Its target price is Rs 700. That is, potential returns, 29 percent.

Voltas, King of AC segment

Jefferies have also maintained a BUY rating on Voltas, although the target price has been reduced slightly to Rs 1,680 (earlier it was Rs 1,790). Voltas holds 20-21 percent stake in the Room AC market in India, that is, it is a big player in the segment.

But this time untimely rains in May-June have shocked AC sales. It is estimated that the sale of RAC industry may fall from 15-20 per cent year-on-year. The stock remains more than normal in the company’s dealer channels. Its target price is Rs 1,680.

New Florine International, ready for high performance

Jefferies have also fixed the target price of Rs 5,280 while retaining a buy call on new florine. This shows 16 per cent upside from the current price. The time has come to monetize the Rs 2,000 crore which the company has done in the last three years. Through long term contracts, the company is preparing to show 35 % CAGR in its EPS (between FY25 to FY27).

In specialty chemicals, CDMO and High Performance Products (HPP), the company’s contract pipeline may be finalized in FY26, which will provide a clear picture of growth by FY28. However, since January 2023, its stock has underpired 23 percent from Nifty. Its target price is Rs 5,280.

What to do investors?

This report of Jefferies clearly indicates that these three companies can play a big role in their sector in the coming 1-2 years. If you are looking for long term growth and are ready to take a little risk, then these stocks can become part of your portfolio.

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

Also read: Investors are putting money in this mutual fund, know what is the reason

After the terrorist attack in Pahalgam, there is a huge rise in defense stock. In the last one month, Hindustan Aeronautics Limited i.e. HAL shares have risen about 16 percent. Amidst India and Pakistan tension, PM Modi has seen a tremendous increase in the stock of defense companies after praising indigenous weapons.

Global brokerage firm Jefferies India Private Limited estimates that this stock and 29 percent may jump. The target price for HAL’s stock from Jefferies has been given Rs 6475, and BUY rating has been given. At this time it remains at the level of Rs 5000.

And can run HAL shares

Brokerage has given a strong order in HAL’s shares. Jefferies estimates that the revenue will continue to grow in the double digits of HAL in the next 3 to 5 years, which will be operated by high margin service revenue and aircraft delivery. In FY 2025, HAL received orders of Rs 1.2 lakh crore, which is three times more than last year. Of these, 1 lakh crore are manufacturing orders while the rest are related to repair and maintenance.

Big order to HAL in future

In future, weapon-making company LAL is expected to get a Tejas mark 1A of Rs 65,000 crore, an advanced light helicopter of Rs 34,000 crore, Sukhoi-30 upgrade of 60,000 crore. HAL Management said in FY 2024 that 8-9 percent of CAGR is expected to increase service revenue. In addition, manufacturing revenue may increase by 15–18% CAGR. Also, with the introduction of GE engine delivery from FY 2026, manufacturing earnings are expected to speed up.