Rajen Shah of Angel Broking is of the view that Deccan Aviation is fairly priced at current levels.
Shah told CNBC-TV18, "After the numbers Deccan Aviation posted for June quarter and September quarter, all the analysts including myself were not bullish on this stock at all at levels of Rs 105 and we went absolutely wrong over there because Deccan surprised everyone by moving up very sharply. No doubt the air traffic will be increasing substantially in the coming years but I don't expect Deccan to post any kind of profits in the current year and even for 2008 or so the company may just breakeven."
He further added, "While it could surprise at the upside because of the huge growth we could see in air traffic and therefore its business but I think fundamentally the stock at these levels is fairly priced but momentum could take it higher. So its any one's call whether to hold on or not."
Disclosures: We are holding shares of South Indian Bank for our clients.
