IndiGo Shares Rebound After 17% Drop; Brokerages Bullish, DGCA Response Sent

• IndiGo shares attempted recovery after a 17% drop over seven days, which wiped out over ₹40,000 crore, but closed slightly down.
• Brokerage firms BofA Securities and Goldman Sachs maintained "Buy" ratings, though both reduced target prices due to flight cancellations and rising costs.
• BofA Securities set a target of ₹6600, while Goldman Sachs set ₹5700, citing concerns over unit costs and future pilot hiring expenses.
• IndiGo responded to DGCA's show-cause notice regarding widespread flight cancellations, requesting more time for root cause analysis.
• IndiGo cited minor technical issues, weather, system congestion, and crew rostering challenges as initial reasons for the cancellations.

Why It Matters: IndiGo's operational issues and regulatory action threaten its stock and future earnings.