Why is Vijay Kedia Bullish on Aviation Shares? Ace Investor Explains Himself

 

• Vijay Kedia believes easing of price regulation policy by the government will help airlines improve margins

Ace investor Vijay Kedia's portfolio is closely followed by retail investors and market observers as it gives them an idea about the direction in which the smart money has flown on Dalal Street. There is stock market news for such retail investors and market watchers. Ace Investor is Bullish on Aviation stocks for next two to three years. Vijay Kedia in an exclusive telephonic conversation with Mint shares his belief on the aviation sector.

“In recent years, the government has softened its regulation on airline fares allowing airlines to charge passengers at the same level. This softening regulation on flight ticket pricing has enabled airline companies to improve their margins. That's going to help in doing what we are seeing in the recently announced third quarter results by some of the airline carrier companies," Vijay Kedia said.

On the factors that could boost the traction of aviation companies, Vijay Kedia replied, "The expected boom in domestic hospitality and tourism is going to help the airline carrier companies to earn profits on a sustainable basis. Also, air flying these days Not a luxury. It has now become a necessity. Hence, the number of air travelers is expected to continue to rise in the years to come, which is a good sign to keep the balance sheets of airlines in a healthy and strong position "

When asked about aviation stocks, which can give great returns in next two to three years, Vijay Kedia said that large-sized aviation companies are expected to outperform their peers. However, Vijay Kedia said that this is his firm belief and one should not take it as a recommendation.

For the information of the readers, there are two listed airlines in India that are in the commercial air carrier business - IndiGo or InterGlobe Aviation and SpiceJet. In the past one month, IndiGo's share price has given nearly 5 per cent return to its shareholders, while SpiceJet's share price has declined by over 8 per cent during this period.