Jet Airways may rally to Rs 625- 650 if the deal happens, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, “I am confident that Ethiad is going to zero in on one of the airlines, either Kingfisher Airlines or Jet Airways. If you see the Kingfisher Airlines, they have the threat of licence cancellation, no progress has really happened on the front of the debt repayment to the banks or may be any proposals coming in either in respect to the re-schedulement or may be in respect to some wavier or something like that.”
He further added, “Jet Airways has all the chances of seeing the deal winning with Ethiad of inducting them as a strategic partner and apart from that if you really see the fares which have all been ruling so high on any sector pan India the things have really ran very high and people are quite confident that December quarter of both the airlines Spicejet and Jet Airways is likely to be quite good. So, combination of both the factors, first of the better Q3 numbers and second still keeping the hopes alive of Ethiad zeroing on the Kingfisher Airlines, but the kind of delay which we have been seeing on this Ethiad deal probably that is making the traders impulsive because many of them have entered at a very high level, may be at a price of Rs 550 or more, nobody has been able to catch the kind of run up which just now you have said. So, may be some tired short term investors are exiting from the stock. I am keeping my positive stance because once the deal happens and by the time the results are announced for Q3 I won’t hesitate to see a price of anywhere between Rs 625-650 for the stock.”