Please Share::
India Equity Research Reports, IPO and Stock NewsVisit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily27022012.pdf
Jet Airways (JETIN)
Others
Cash-flow issues to the fore. As per our understanding, Jet Airways is facing cashflow issues with banks denying incremental working capital limits. The Kingfisher
episode has made banks wary of lending to other leveraged airlines. Media articles
suggest that the company has sought government intervention to get finance from
banks. In our view, cash-flow issues could limit turnaround potential for the company.
Hence, we recommend investors to look at players with lower leverage (such as
SpiceJet) as a play on a potential turnaround in the sector. We have reduced our
estimates and downgraded Jet to SELL (ADD earlier) with a revised target price of Rs280
(Rs380 earlier) at 8.7X FY2013E EBITDAR.
No comments:
Post a Comment