The wheels of aviation industry's growth appear well-oiled for coming quarters. With softening of crude oil prices, growth in passenger numbers driven by momentum in leisure and business travel and the upcoming holiday season, the entire airline industry is set to take off.
Among the lot, SpiceJet's valuations look highly attractive. The champion of the low-cost carrier model had posted a net loss exceeding Rs 100 crore in the September 2009 quarter. A healthy profit jump in September 2010 would mean its current valuation is inexpensive.
Some analysts estimate SpiceJet's net profit for the September 2010 quarter at around Rs 65Cr, which will boost its trailing 12-month profits to Rs 256 Cr. Its current market capitalisation is just 12 times this, which appears highly attractive, considering the bright prospects ahead.
No comments:
Post a Comment