VK Sharma, Head of Private Broking & Wealth Management at HDFC Securities recommended selling Jet Airways if one gets 10 percent appreciation on the stock from current levels.
Sharma told CNBC-TV18, “If the Jet-Etihad deal does happen it will be mutually beneficial for both the companies. Etihad will get footage on India with almost 53 stations domestically and they will have an international partner.”
He further said, “My sense is that any upside I don’t think you are going to get the price at which the offer will be made, I don’t think there is going to be an open offer because the amount is less than that. So, don’t aim for that. My sense is that even before the deal if you get a 10 percent appreciation from here, by all means exit the stock.”
“Currently even if the deal doesn’t happen one thing that can still buoy the stock is that if the crude continues to tumble aviation turbine fuel (ATF) prices are bound to come down. And therefore to that extent operationally they will have better profits but that is applicable to overall airline sector,” Sharma added.