Mehabe score: 6 G Factor: 2 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 5.
Description
Jet Airways (India) Limited is a public limited company incorporated in India. The Company commence its operations on 5 May, 1993. The principal activities of the Company comprise scheduled air transportation which includes carriage of passengers & cargo and provision of related allied services.Site:JETAIRWAYSMain Symbol:JETAIRWAYS
Stock trades at 94.8, above its 50dma 91.85. It also trades above its 200dma 87.64. The stock remains bullish on techicals
The 52 week high is at 169.90 and the 52week low is at 27.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -71.90% over past five years.
-Promoter holding is low: 24.99%
-Contingent liabilities of Rs.3817.70 Cr.
-Earnings include an other income of Rs.311.34 Cr.
– has high debtors of 241.82 days.
-Promoter holding has decreased over last 3 years: -26.01%
Competition
– The industry trades at a mean P/E of 8.8x. Interglobe Aviat trades at the industry’s max P/E of 12.56x. JETAIRWAYS trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. JETAIRWAYS has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by TAAL Enterprises: a return of 32.99 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 41.0 cr compared to Rs 10.0 cr for period ended Sep 2020, a rise of 310.0%
Company reported negative operating profit of Rs -19.0 cr for period ended Sep 2021. For same period last year, operating profit was -13.0
The EPS for Sep 2021 was Rs -26.92 compared to Rs -11.35 for previous quarter ended Jun 2021 and Rs 13.42 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 134.0 cr for period ended TTM vis-vis sales of Rs 39.0 cr for the period ended Mar 2021, a healthy growth of 70.9%. The 3 year sales cagr stood at -82.0%.
Operating margins expanded to -171.0% for period ended TTM vis-vis -617.0% for period ended Mar 2021, expansion of 44600.0 bps.
Net Profit reported at Rs -586.0 cr for period ended TTM vis-vis sales of Rs -152.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 76.0 cr for period ended Mar 2021 vis-vis Rs -2620.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 46% on a 1 Year basis vis-vis a return of -28% over the last 3 Years. – The compounded sales growth on a TTM bassis is % vis-vis a compounded sales growth of -88% over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.18% vis-vis 0.21% for Jun 2021 – Public shareholding has risen for the period ended Sep 2021. The Sep 2021 public holding stood at 48.75% vis-vis 46.65% for Jun 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -71.90% over past five years.
-Promoter holding is low: 24.99%
-Contingent liabilities of Rs.3817.70 Cr.
-Earnings include an other income of Rs.311.34 Cr.
– has high debtors of 241.82 days.
-Promoter holding has decreased over last 3 years: -26.01%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 91.85 and is trading at 94.8 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
