Hold Jet Airways, Kingfisher Airlines: Tulsian

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Hold Jet Airways, Kingfisher Airlines: Tulsian

SP Tulsian of sptulsian.com is of the view that one should hold Jet Airways and Kingfisher Airlines.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Jet Airways See messages about Jet Airways

SP Tulsian of sptulsian.com is of the view that one should hold Jet Airways and Kingfisher Airlines .

Tulsian told CNBC-TV18, "At the current valuations if you see maybe in case of Jet Airways with the market cap of close to about Rs 2,500 crore and Kingfisher at about Rs 1,400 crore, I think that there will be takers because the kind of growth we are seeing in the Indian market, you must have heard the industry veterans, I don't think that that will be the scenario here that there will be no takers in the domestic airlines because if you see the main culprit for the losses incurred by all these airlines on FY11, I am not referring the H1 performance, Kingfisher had a cash loss of Rs 1,300 crore and they had interest liability of Rs 1,300 crore."

He further added, "If you can set off this negative component of your expense being interest by infusion of the capital, which you may get to see from foreign airlines and all that, I think that can substantially improve the health of the airlines."

"The shares have all corrected by about 60-70% in this last one year. I am not holding extremely positive view, I am not optimistic on the Jet Airways that it can go beyond Rs 300 or maybe for Kingfisher beyond Rs 30-31 but I have not been negative because the same views I expressed last week also that I am holding my buying call on Jet Airways at that time at about Rs 150 or maybe on Kingfisher Airlines at about Rs 19-19.5. So the same view is maintained because the stocks have already run up in last couple of days by about 20% plus, so maybe further upside of 10-15%. One should hold."