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Returns At InterGlobe Aviation (NSE:INDIGO) Are On The Way Up

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Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at InterGlobe Aviation (NSE:INDIGO) and its trend of ROCE, we really liked what we saw.

Understanding Return On Capital Employed (ROCE)

For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for InterGlobe Aviation:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.13 = ₹110b ÷ (₹1.2t – ₹342b) (Based on the trailing twelve months to March 2025).

So, InterGlobe Aviation has an ROCE of 13%. On its own, that’s a standard return, however it’s much better than the 8.4% generated by the Airlines industry.

View our latest analysis for InterGlobe Aviation

NSEI:INDIGO Return on Capital Employed July 21st 2025

In the above chart we have measured InterGlobe Aviation’s prior ROCE against its prior performance, but the future is arguably more important. If you’d like, you can check out the forecasts from the analysts covering InterGlobe Aviation for free.

What Does the ROCE Trend For InterGlobe Aviation Tell Us?

We like the trends that we’re seeing from InterGlobe Aviation. The data shows that returns on capital have increased substantially over the last five years to 13%. The amount of capital employed has increased too, by 218%. This can indicate that there’s plenty of opportunities to invest capital internally and at ever higher rates, a combination that’s common among multi-baggers.

What We Can Learn From InterGlobe Aviation’s ROCE

To sum it up, InterGlobe Aviation has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And a remarkable 518% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it’s worth looking further into this stock because if InterGlobe Aviation can keep these trends up, it could have a bright future ahead.

On the other side of ROCE, we have to consider valuation. That’s why we have a FREE intrinsic value estimation for INDIGO on our platform that is definitely worth checking out.

While InterGlobe Aviation may not currently earn the highest returns, we’ve compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.



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‘This Is Not Okay’: Alaska Airlines Fleet Grounded Due To ‘IT Outage’, Passengers Stranded | World News

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Last Updated:

The airline said it experienced an “IT Outage” that resulted in a temporary, system-wide ground stop” for all flights. It was resolved, but not before leaving passengers stranded.

All flights of Alaska Airlines were grounded briefly after an IT outage. (AFP)

Alaska Airlines was hit by an “IT outage” on Monday, forcing the airline to ground all aircraft till operations went back to normal. The airline apologised for the disruption and urged travellers to check their flight status.

The airline said that around 11 pm ET (8:30 am Indian time), it experienced an “IT Outage that resulted in a temporary, system-wide ground stop for Alaska Airlines and Horizon Air flights.” Horizon Air is the Alaska Air Group’s subsidiary serving mainly the Pacific Northwest and Alaska.

Alaska Airlines later resumed operations, saying that it will take some time for overall operations to get back to normal. The ground stop was lifted at 2 am (11:30 am IST), but not before leaving several passengers stranded.

A ground stop is an air traffic control measure that restricts certain planes from taking off and requires them to remain on the ground, according to the FAA, causing potential travel disruptions and delays.

The US Federal Aviation Administration (FAA) status page showed all destinations affected by the halt of Alaska’s mainline aircraft. “We apologise for the inconvenience,” Alaska Airlines said. “As we reposition our aircraft and crews, there will most likely be residual impacts to our flights.”

Backlash From Passengers

The ground stop drew a fierce backlash from passengers who were stranded for hours. “This is brutal. We’ve been sitting at the airport for two hours,” wrote a user on X. “It’s 10:20 pm, people are tired, hungry, etc. This is not okay.”

Video from a passenger aboard a grounded flight at Seattle–Tacoma International Airport shows travellers waiting to deplane as a crew member is heard apologising on the PA system and calling it a “very, very frustrating night”.

“As soon as we landed, we moved to the middle traffic lane, and they let us know there was a malfunction in the computer system,” Chris Fabregas, a passenger who had flown in from Nashville, told CNN.

Last year, Alaska Airlines had experienced a similar IT outage that caused significant disruption to its operations, including delayed flights. Multiple users had complained that they were facing difficulties accessing its app and website.

The incident also comes more than a year after a door plug section of a newly delivered Boeing 737 Max 9 blew out during an Alaska Airlines flight between Portland, Oregon and Ontario, California in January last year, which caused several Boeing aircraft operated by US airlines to be grounded.

(with agency inputs)

Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international…Read More

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international… Read More

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News world ‘This Is Not Okay’: Alaska Airlines Fleet Grounded Due To ‘IT Outage’, Passengers Stranded
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Tassili Airlines’ share transfer to Air Algérie completed

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‘Western Media Promoting Own Viewpoint…We Stand By Truth’: Aviation Minister On Air India Crash | Mobility News

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New Delhi: Union Civil Aviation Minister Kinjarapu Rammohan Naidu on Monday backed the Aircraft Accident Investigation Bureau’s (AAIB) and added that the agency is unbiased in its investigation of the Air India plane crash. He also blasted the Western media, accusing them of promoting their own viewpoint over the tragic accident. Speaking in the Lok Sabha, the Minister raised concerns about biased narratives around the incident. He pointed out that some international reports appear to promote specific viewpoints, and stressed that India relies only on facts.

Lauding the AAIB, Naidu said that the agency is “unbiased”. “I want to say to the country that AAIB has a thorough rule-based process and they are totally unbiased”, the Union Minister said, adding that, “I have seen multiple articles not only by the Indian media but also by the Western media trying to promote their own viewpoint. The way we are seeing the investigation is through facts. We want to stand by the truth. And that will only be revealed when the investigation is complete.”



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