Jet may rally 20% post Etihad deal; no hopes for KFA: Angel

Kingfisher Airlines stock has zero value and could be delisted from the Indian indices believes Sharan Lillaney of Angel Broking.

Lillaney's take on KFA comes just a few days after the airline's creditor banks began recalling the outstanding loans. The legal process could lead to a sale of Kingfisher's assets held as collateral. Banks have lent nearly Rs 8000 crore to KFA and expect to recover about Rs 2400 crore through the selling of securities.
Lillaney is positive on the Etihad- Jet Airways deal and says the deal will help the company fundamentally. "We could see atleast 20 percent upside post the announcement," says Lillaney. The Abu Dhabi based airline will pick up 24 percent stake in Jet, India's second largest carrier by market share. The deal is valued around Rs 1600-1700 crore. Below is the edited transcript of Lillaney's interview to CNBC-TV18. Q: Do you see more headroom for Jet Airways when the deal announcement itself is made?
A: Once the deal announcement has been made, the company will get enough cash to reduce its debt. That will help it fundamentally. Therefore, there is good upside post the deal. We could see atleast 20 percent upside post the announcement. Q: What about Kingfisher Airlines? It has already become a single digit stock now. Where does it head?
A: Kingfisher has shutdown completely and even the banks have recalled the money. Therefore, I feel the share itself has zero value currently. So, it can head down to Rs 5-4 or even get delisted after certain time.